Typically offered as an element of wider benefits schemes for employees, relevant life cover is beneficial to both companies and their staff.  But exactly what are the benefits relevant life plans offer both employees and employers? Read on to find out…

What is Relevant Life Cover?

Let’s begin with a brief look at what relevant life policies are…

Taken out by companies on behalf of some or all their employees, including directors, relevant life plans are life insurance policies (often combined with optional employee significant illness cover) that will pay out a tax-free lump sum to insured individuals’ families in the event of their death or, if this cover was added, significant illness.

Frequently offered within a wider framework of employee benefits, these policies’ premiums are paid for by the employers taking them out and, as policy holders, said employers determine:

  • Cover amounts (i.e. the sum to be paid out upon a named individual’s death or, if applicable, significant illness diagnosis
  • Whether these amounts will remain level (stay fixed) or increase (to counteract future inflation effects) over time, as well as which, if any, optional extras will be included.

Optional extras offered may, for example, include cover for significant illness and/or total permanent disability. Learn more about relevant life plans.

So, what Are the Benefits Relevant Life Plans Offer?

For employees, having a relevant life plan in place means they have peace of mind knowing that their families’ financial security will not be at risk if something happens to them. In other words, they no longer must worry about how their families will cope financially in the event of a significant illness diagnosis or their death – because they know the lump sum to be paid out in such an event will provide for them.

By giving valued employees this kind of peace of mind, these policies could ultimately increase their productivity by improving their morale, as well as their overall attitude towards the employer and their ability to concentrate on their work.

This, of course, is beneficial to employers, as increased productivity invariably also means increased profitability. What’s more, the premiums for relevant life plans are usually classed as allowable business expenses, which means they are tax-deductible.

As such, they offer businesses a cost-effective, tax-efficient way of arranging life/significant illness cover for their most valuable employees – while simultaneously enhancing their reputation as responsible employers who care not only for their employees but their families, too.

Boasting such an excellent reputation will naturally also make it easier for a company to attract and retain staff of the highest possible calibre.

Contact Spectrum FA

Considering these benefits for all concerned, relevant life plans are something every company should consider. Are you ready to provide your employees with peace of mind while at the same time enhancing your business’ reputation as a caring employer? Give us a call now: 01279 315 013.