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Relevant Life Cover

Relevant Life Cover is a tax efficient way for employers to give individual death-in-service benefits to employees outside of a registered group life scheme. It pays out a lump sum if the employee dies, or is diagnosed with a terminal illness during the term of the policy.

It is paid for by the employer and must be written in Trust before the policy can start. This makes sure the lump sum payment can be paid to the employee’s chosen beneficiaries.

Key benefits

  • Write up to 25 individual policies under one plan
  • Portability - cover can move with the employee without the need for further underwriting
  • Terminal Illness Cover is included at no extra cost

 

Why choose our Relevant Life Cover?

  • It won’t form part of the employee’s pension lifetime allowance
  • Lump sum payment will be free from Income Tax
  • Lump sum payments are usually free from Inheritance Tax as the policy must be set up in trust
  • Premiums paid by the employer are usually treated as an allowable business expense by HMRC
  • The tax benefits referred to are based on Scottish Widows' understanding of HM Revenue and Customs practise and UK law
  • Tax treatment depends on your client’s individual circumstances and may be subject to change

 

Product information

 

Basis of cover

Level - available as a lump sum.
Increasing - available as a lump sum. The sum assured will increase each year in line with the Retail Price Index (RPI). The increases will be at least 2% up to a maximum of 10%.

Minimum Term

1 year

Minimum age when cover starts 18
Maximum age when cover starts 73
Maximum age when cover finishes 75 next birthday
Minimum Sum Assured £25,000
Maximum Sum Assured

Level - £25,000,000
Increasing - £15,000,000 (annual increases are allowed up to a total of £30,000,000)

Premiums Guaranteed

 

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Scottish Widows Limited. Registered in England and Wales No. 3196171. Registered office in the United Kingdom at 25 Gresham Street, London EC2V 7HN. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Financial Services Register number 181655.

Scottish Widows Unit Trust Managers Limited. Registered in England and Wales No. 1629925. Registered Office in the United Kingdom at Charlton Place, Andover, Hampshire SP10 1RE. Tel: 0345 300 2244. Authorised and regulated by the Financial Conduct Authority. Financial Services Register number 122129.

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Scottish Widows Bank is a trading name of Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales, no. 2065. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under number 119278.

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