What Is A Relevant Life Plan?

The Top 10 Facts of a Relevant Life Plan

  1. A Relevant Life Plan (RLP) is an individual Death in Service plan.
  2. The policy is available to employees, which can include Directors of Limited Companies on PAYE.
  3. RLPs are not available for partners, members of a Limited Liability Partnership (LLP) or sole traders.
  4. RLP is taken out by the employer on the life of the employee.
  5. The plan cannot go beyond age 75.
  6. The plan can only provide life cover and no additional benefits (other than terminal illness benefit during employment).
  7. The plan must be written under a discretionary trust. The beneficiaries of the trust are the family of the person covered.
  8. Benefits from the policy should be paid free of inheritance tax.
  9. Premiums for a RLP can often be viewed as an allowable business expense by HRMC so the premiums should qualify for full income tax relief, national insurance relief and corporation tax relief.
  10. The premiums and benefits do not count towards annual or lifetime pension allowances, because RLPs are not registered group schemes and do not come under pensions legislations

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