Relevant Life Plan Cover

Relevant Life Plan Cover.

Case Study.

In 2010, DEZINES Internet Solutions Limited - a busy design agency in Newport, South East Wales, obtained a small business loan of £25K from one of the leading banks. A requirement to secure the loan was that the Managing Director took out insurance cover from the bank for death and critical illness. The policy was both expensive and had a low ceiling of cover.

About a year later and by chance, the MD at DEZINES met with a Business Protection and Mortgage Adviser from Openwork and explained the situation with the bank. The Adviser looked at the policy information and truly believed there was a '0' missing off the cover amount provided. The Adviser saw the level of cover was insufficient for the premium being paid and as a result recommended a Relevant Life Plan.

When the MD at Dezines saw the difference between the bank's policy and the tax efficient policy from the insurance brand - there was no hesitation committing to the Relevant Life Plan arranged by the Adviser and underwritten by the insurance brand. One of the attractive elements of the RLP policy to the MD apart from the significantly higher cover for a lower premium, was that beneficiaries could be named in the trust and allocated varying amounts of the insurance payout on 'death in service' with or without a will in place.

The Managing Director at Dezines still has the Relevant Life Plan in place and continues to enjoy the 'peace of mind' that this type of insurance cover provides.

The insurance cover has tax efficient benefits because the policy is paid for by the business for the employee(s), although the policy is personal to the named individual. However, despite this, it currently remains tax deductible and doesn't count towards any annual tax or pension allowances.

Did you know there are a range of Relevant Life Plans including one's which provide incentives to stay healthy.

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