Relevant life plan for peace of mind 

A Relevant Life Plan is a life insurance plan taken out by an employer on the employees behalf, to provide an individual death in service benefit for their employees.

How does business loan protection work?

This insurance product pays a lump sum to the employee’s family if the employee dies when employed, while the plan is in place. Terminal Illness Cover is included, which could pay out if the employee, whilst employed and covered by the plan, is diagnosed with a terminal illness, with life expectancy of less than 12 months. Premiums are paid, and the policy is owned by the employer.

What are the DEtails
  • Minimum cover: No minimum amount of cover. Driven by minimum premium.
  • Maximum cover: Depends on the employee’s age and remuneration.
    • Age 17 to 49 – up to 25 x remuneration
    • Age 50 to 59 – up to 20 x remuneration
    • Age 60 to 73 – up to 15 x remuneration

    Remuneration includes salary, bonuses, benefits in kind and regular dividends from shares in the employer’s company or a company within the employer’s group of companies.

  • Type of cover: The amount of cover can remain the same throughout the duration of the plan or increase. The amount of cover on increasing plans increases in line with changes in the Retail Price Index, up to a maximum of 10% of the current amount of cover to help protect the cover against inflation. The premiums on increasing plans increase by the change in RPI multiplied by 1.5 up to a maximum of 15% of the current premium.
  • Minimum term: 1 year for level cover (without Terminal Illness Cover). 2 years for increasing cover.
  • Maximum term: 40 years.
  • Minimum age: The minimum age to take out a policy is 18. The policy should be set up as a Relevant Life Plan in the usual way, with the business as the policy owner and written under trust. The minimum age at the end of the policy is 29.
  • Maximum age: The maximum age for buying a policy is 73. The policy must end by your client’s 75th birthday.
  • Premiums: Premiums are guaranteed and payable monthly or annually by Direct Debit.
  • Trusts: The policy must be placed into a Relevant Life Plan Trust.
What are the DEtails
  • Minimum cover: No minimum amount of cover. Driven by minimum premium.
  • Maximum cover: Depends on the employee’s age and remuneration.
    • Age 17 to 49 – up to 25 x remuneration
    • Age 50 to 59 – up to 20 x remuneration
    • Age 60 to 73 – up to 15 x remuneration

    Remuneration includes salary, bonuses, benefits in kind and regular dividends from shares in the employer’s company or a company within the employer’s group of companies.

  • Type of cover: The amount of cover can remain the same throughout the duration of the plan or increase. The amount of cover on increasing plans increases in line with changes in the Retail Price Index, up to a maximum of 10% of the current amount of cover to help protect the cover against inflation. The premiums on increasing plans increase by the change in RPI multiplied by 1.5 up to a maximum of 15% of the current premium.
  • Minimum term: 1 year for level cover (without Terminal Illness Cover). 2 years for increasing cover.
  • Maximum term: 40 years.
  • Minimum age: The minimum age to take out a policy is 18. The policy should be set up as a Relevant Life Plan in the usual way, with the business as the policy owner and written under trust. The minimum age at the end of the policy is 29.
  • Maximum age: The maximum age for buying a policy is 73. The policy must end by your client’s 75th birthday.
  • Premiums: Premiums are guaranteed and payable monthly or annually by Direct Debit.
  • Trusts: The policy must be placed into a Relevant Life Plan Trust.

What are the benefits and options?

Accidental Death Benefit:

Automatically included.

Changing Your Policy (Also known as Guaranteed Insurability Option):

Can increase cover on certain specified events, without need for further medical evidence. Eligibility criteria and restrictions apply.

Other changes:

Your client can request to make other changes to their plan. A new policy may need to be set up.

Continuation Cover:

Automatically included.

Wellbeing Support – Provided by RedArc Assured Limited:

 Automatically included. Not available on Whole of Life Protection Plan.

Terminal Illness Cover:

Automatically if life expectancy is less than 12 months unless term is less than 2 years.

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