The Top 10 Facts of a Relevant Life Plan
- A Relevant Life Plan (RLP) is an individual Death in Service plan.
- The policy is available to employees, which can include Directors of Limited Companies on PAYE.
- RLPs are not available for partners, members of a Limited Liability Partnership (LLP) or sole traders.
- RLP is taken out by the employer on the life of the employee.
- The plan cannot go beyond age 75.
- The plan can only provide life cover and no additional benefits (other than terminal illness benefit during employment).
- The plan must be written under a discretionary trust. The beneficiaries of the trust are the family of the person covered.
- Benefits from the policy should be paid free of inheritance tax.
- 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.
- 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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