Business Owners and Execs, what if you could save up to 50% on your life insurance?
Most business owners and execs have life insurance that they pay for out of their own back pocket but they don’t realise they could be making a saving by using a Relevant Life policy.
A Relevant Life plan is a tax efficient life insurance policy paid for by the company but the benefits are paid to your family. It does exactly the same job as life insurance but comes with the tax efficiency of a fully deductible business expense.
12 Days, 12 Insights and 12 Ways to Cut the Cost of Your Life Cover
Discover how to protect your family in the most tax efficient way possible. Over the next 12 days you will receive simple, practical insights that help you check if you qualify for Relevant Life, avoid common mistakes and make sure you are not paying more than you need to for your life insurance.
Here's how you could save money
Lets take a look at the numbers to see how Relevant Life could save a business owner money and look after their loved ones if they ever needed to make a claim.
In this scenario we’ll compare a standard £100 life insurance premium against Relevant Life.
Assumptions:
- Premium is £100
- Highest rate of income tax is 40%
- Company Corp tax is 25%
- Employee NI is 2%
- Employer NI is 15%
- Premiums are paid from earnings, not dividends
Life Policy Paid Via Salary
Salary Cost: £172.41
Employer NI: +£25.86
Corp Tax: -£49.57
TOTAL COST: £148.71
Relevant Life Paid By The Company
Premium: £100
Corp tax: -£25
TOTAL COST: £75
That’s a 50.43% saving for exactly the same cover.
Now imagine if this was a policy lasting 30 years.
Over that time, using relevant life equates to £26,535.60 saved
Why business owners and execs use Relevant Life
Premiums are paid by the company, not from your personal income.
No benefit-in-kind charges, so you are not taxed personally.
Corp tax relief available on relevant life plans that satisfy the ‘wholly and exclusively’ rules.
Possible to save up to 50% when compared to a personal life insurance policy.
Pays a lump sum to your family or chosen beneficiaries if you die.
Payouts don’t contribute to your maximum life time allowances.
Find out if Relevant Life could work for you
12 Days, 12 Insights and 12 Ways to Cut the Cost of Your Life Cover
Discover how to protect your family in the most tax efficient way possible. Over the next 12 days you will receive simple, practical insights that help you check if you qualify for Relevant Life, avoid common mistakes and make sure you are not paying more than you need to for your life insurance.