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The Benefits of Relevant Life Insurance

Looking after your staff is an essential part of running a business. It is a documented fact that fitter and healthier employees are more engaged and therefore, more efficient. A Relevant Life Insurance scheme is the perfect way to protect your staff, but also reap some benefits yourself.

Relevant Life Insurance is beneficial for the employer as it is tax deductible and there are no National Insurance contributions like ordinary life insurance policies. The employee also benefits as there is no additional deduction from their pay packet, yet they have the peace of mind of being covered.

It is a great alternative to the traditional “death in service” clause, yet it still provides a cash lump sum payout if an employee dies. There is the option to use the scheme as a top-up to an existing “death in service” benefit. The cash lump sum is also payable on diagnosis of terminal illness and is exempt from income and inheritance tax on payout.

Depending on the policy provider, the scheme can come with some fantastic discounts and benefits for employees, that actively encourage them to look after their health and fitness (such as meal vouchers and gym membership). And healthier and fitter employees make for a more productive business. The scheme is aimed at key employees and high earners and is a great way to make them feel valued.