A Relevant Life Policy is suitable for those employers who, probably because of the slighter size of their business, do not desire to set up group arrangements for all their employees or who appeal to provide additional death assistance to be paid through a discretionary trust on the death of definite discrete employees to their families. A Relevant Life Policy is also appropriate when the employer wishes to provide tax effective supplementary benefits to surviving death in service arrangements. A Relevant Life Policy will not be appropriate if: The life to be assured is not an employee. It is planned to offer benefits beyond age 75 and beyond the dated of employment. It is planned to afford benefits further than just death and terminal illness benefit.
In addition to the application form the employer necessity also comprehensive the Relevant Life Policy Trust application. The draft of this demand is also provided by Zurich Relevant Life Policy and it contains comprehensive explanatory proceedings of how the trust works. The trust certification must be accomplished at the same time as the application, before the strategy is delivered. They’re essentialis an employer/employee relationship.
Directors of a company, comprising shareholding directors, are also preserved as employees for this resolve, although attention should be exercised if it is planned to find a plan for the life of a substantial shareholder. However, partners, LLP (Limited Liability Partnership) associates and sole agents are not employees.
The only advantage provided under the design is a death profit, but this includes a payment on diagnosis of a terminal illness as defined in the plan. However, to observe with statutory requirements the terminal illness advantage is only outstanding as long as the life guaranteed is still in employment.The advantage will be paid by Zurich Relevant Life Policy to the representatives of the Relevant Life Policy Trust. The trustees have pleasure as to who should obtain the death benefit and terminal illness profit from the classes of beneficiaries quantified in the trust. If the terminal illness profit develops payable, it is predictable that the trustees will salary it to the member. The employee, called the member underneath the trust, can and should entire a nomination form. This is a non-binding appearance of wishes to his trustees. This is similar to the technique of nominating beneficiaries below a registered pension scheme. In relation to the employee in order to protect the advantageous tax treatment that Relevant Life Policies offer, and there are guaranteeing limits.