BUSINESS PLANNING
What is relevant life insurance?
Share protection is a safety mechanism designed for businesses to ensure stability in times of uncertainty. It functions by providing a lump sum to the surviving business owners if a fellow owner dies or is diagnosed with a terminal (life expectancy less than 12 months) or specified critical illness, given the cover was elected at the onset of the policy. This financial provision enables the remaining owners to acquire the interest of the deceased or critically ill partner, thus preventing potential disruption in the business’s operations and ownership structure.
Cost-effectiveness of relevant life plans
For employers, setting up these plans can be significantly lower than an employee’s cost for securing a similar personal life policy. Furthermore, premiums paid for relevant life plans are generally considered an allowable business expense by HM Revenue & Customs, enabling employers to benefit from full Income Tax relief, National Insurance relief, and Corporation Tax relief. This could result in premium reductions compared to standard life policies.
A commitment to employee welfare
The advantages of incorporating relevant life insurance into your benefits package extend beyond cost savings. Providing this type of insurance demonstrates a commitment to employee welfare, positioning your company as a caring and responsible employer. Enhancing your overall benefits package not only aids in attracting new talent but also plays a crucial role in retaining current employees.
Peace of mind and financial security
Relevant life insurance can also help reduce your company’s tax liability. Premiums are usually recognised as a business expense, potentially qualifying for tax deductions. Additionally, keeping the plan in trust enables employees to make provisions for Inheritance Tax (IHT) planning, offering their families peace of mind and financial security.
Ready to discuss how you secure and protect your business’s future?
At Roxburgh Financial Services, our highly experienced team is dedicated to advising and supporting you in setting up protection that aligns with your business’s financial obligations and goals. Protect your business’s future today and ensure your company remains robust and capable of meeting its financial obligations, even in adversity.
Contact Roxburgh Financial Services to discuss how we can support your business and provide ultimate peace of mind for you, your staff, and your stakeholders. Secure your business’s financial lifeline if you lose a key employee.