Relevant life protection

Relevant Life Protection allows your business to offer your salaried Directors (who may exceed their personal pension lifetime allowance) and employees a “death-in-service” benefit.

The policy is set up by the business and is written under a discretionary trust. In the event of a valid claim, the policy pays out a tax-free lump sum on death of the employee. The policy proceeds are paid directly to the employees’ family or dependents.

If the local inspector of taxes is satisfied that the policy premiums qualify under the “wholly and exclusively” rules, HMRC treat the premiums paid as an allowable business expense and would not be included as a P11d benefit.