Check eligibility
The employee’s status, employer and provider criteria matter. Being a shareholder or running a business does not, by itself, establish eligibility.
Business protection / Employees and directors
Relevant life insurance is individual death-in-service cover arranged by an employer for an eligible employee, which can include a company director. The intended benefit is for the employee’s family or financial dependants.
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A relevant life policy generally provides a lump sum following a valid death claim during the term, with terminal illness benefits available subject to the policy’s terms. It is not intended to compensate the business for lost profits or to fund a share purchase.
The employee’s status, employer and provider criteria matter. Being a shareholder or running a business does not, by itself, establish eligibility.
Consider the employee’s family commitments, existing cover, the amount required, the term and the employer’s budget.
Policy ownership and an appropriate trust are important. The intended beneficiaries and the responsibilities of trustees should be understood from the outset.
A relevant life arrangement may offer favourable tax treatment when the applicable conditions are met. Relief on premiums and the treatment of benefits should never be assumed: the purpose, structure and circumstances matter, and tax rules can change.
Ask your accountant to confirm the treatment for the employer and employee. Trusts can also have tax implications. MOVA does not provide tax or legal advice.
No. Eligibility depends on employment status and provider criteria. A sole trader’s own life, a partner or an LLP member may need a different arrangement. We will check the position before making a recommendation.
Options depend on the policy and insurer. A change of employment should prompt a review of ownership, premiums and whether the arrangement remains suitable.
Relevant life cover is protection, not an investment or savings plan. It does not build up a cash value.
Cover is subject to underwriting, insurer terms and exclusions. A claim must meet the policy’s conditions and premiums must be maintained as required.
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Tell Steven a little about the business, the people involved and what you would like to protect.