Relevant Life Cover is a tax-efficient life insurance policy, allowing companies to offer a death-in-service benefit to its employees. It’s set up by the company and pays out a tax-free, lump sum on the death of the person insured. The proceeds go directly to the employee’s family or financial dependants. The premiums are paid monthly and are guaranteed premiums for the relevant life policy. Benefits usually free from inheritance tax. The maximum amount of cover available is £10million.

Life scheme:

There is no cash value at any time. If your client stops paying their premiums, the related cover may end. After the plan has been issued, your clients won’t be able to change it. We won’t pay a claim if the person covered dies as a result of intentionally taking their own life within the first 12 months of the policy starting. Businesses are too small for a group life scheme. If injury or illness befalls you, health insurance covers private treatment with preferred doctors, consultants, hospitals and clinics, for pre-agreed conditions and ailments. Insurers sometimes refer to health insurance as PMI, but in most cases, the product is the same, although what is covered will vary from policy to policy.

Partnership companies:

High-earning employees who might exceed their personal pension lifetime allowance. Registered group life schemes are included in pension legislation, meaning any paid claim is included in the employee’s pension fund. Claims paid under Relevant Life Cover don’t count towards a person’s lifetime allowance. Members of group life schemes who want to top up their benefits. The person covered must be a UK resident and an employee of a UK business and cover must stop by age 75. Relevant Life policy is not available to sole traders or partnership companies and must be written in a discretionary trust.

Continuation cover:

As with any death-in-service scheme, the employee should remember that the life cover they have may cease if they leave their job, or if they lose it. This will almost certainly apply to a group scheme, but relevant life plans may offer continuation cover or portability, allowing the individual to maintain the policy themselves, or shift it to a new company if they move jobs. If this portability is available it may not be subject to a further medical check, an important factor as older people and those with health issues are likely to face higher life insurance premiums.Health insurance gives you access to private consultancy at a hospital of your choice, at a time that suits you and your family.