Many companies offer their employees a ‘death in service’ benefit, paying the employee’s family a lump sum if they die while they’re employed. However, this kind of benefit doesn’t suit every company.
• It’s not normally available to companies with fewer than five employees
• It’s arranged on a group basis which makes it harder to tailor benefits to suit different employees
• It may not suit everybody either, high earners with large pension pots can find it takes them over their Lifetime Allowance
There is however a tax-efficient and cost-effective alternative. Not only can your clients save nearly 50% tax (compared to an ordinary life policy) but they can help their employees lead healthier lives and reward them with a range of discounts when they take out a Relevant Life Policy with VitalityLife.
An SME employee benefits package. Big business benefits for small businesses.
A Relevant Life Policy from VitalityLife helps your clients and their employees to lead healthier lives. You can offer a wide-ranging employee benefits package that your clients might not otherwise be able to access.
A Relevant Life Policy is suitable in many situations, not just SMEs looking for life cover or an employee benefits package
Directors of limited companies can enjoy valuable tax benefits if the premiums for life insurance are paid by one company instead of from personal income after tax.
A Relevant Life Policy can provide individually calculated cover levels so are suitable where companies only want to reward several employees or provide variable cover.
The benefits of Relevant Life Polices do not count towards the current Lifetime Allowance of £1.25 million, above which tax is currently charged at 55% tax (on death).
Benefits for you
• Offer your clients more than just a standard RLP
• A great employee benefit package to sell to business clients
• Opportunity to sell further business solutions – loan protection, key person, shareholder business and VitalityHealth SME schemes. Benefits for your clients
• Tax efficient – nearly 50% tax savings – a tax deductible business expense and no National Insurance contributions
• A great employee benefit for small businesses
• More affordable cover – an upfront discount on the protection premium of between 5 – 20% for fixed term cover with Vitality Optimiser
• Your clients could receive up to £100 cashback each year with Vitality Optimiser or Vitality Plus depending on how much their employees do get healthy
• Fitter, healthier, more engaged employees that take less time off and are more productive
• Available to companies of all sizes on an individual basis
• Help attract and retain the best people
• Can be used as a ‘top-up’ to death in service benefit Rewards for being healthy
All VitalityLife plans offer your client rewards for being healthy. Vitality Optimiser and Vitality Plus are also available so you can offer your clients even more. A VitalityLife Relevant Life Policy works differently when you add Vitality Optimiser or Vitality Plus – the planholder receives the upfront discount or any premium discount (Vitality Optimiser only) and any cashback. The person covered (i.e employee) receives the remaining discounts and benefits