A Relevant Life Plan is a term assurance plan available to employers to provide an individual death in service benefit for an employee. It is designed to pay a lump sum if the employee dies whilst employed for the length of the policy. It will also pay out if the employee, whilst employed, is diagnosed with a terminal illness and meets our definition at any time during cover. A Relevant Life Plan is paid for by the Employer.
Relevant Life Plans are similar to most other types of life cover except they aim to provide a tax efficient benefit provided by an employer for an employee.
Relevant Life Plan Trust
A Relevant Life Plan is designed to be written in a discretionary trust at outset, with the employee’s family and dependants as beneficiaries – this also removes the benefit amount from the insured person’s estate which means that it can mitigate inheritance tax on death of the insured.