Bright Grey has developed a unique proposition that will benefit small to medium sized businesses, a stand-alone relevant life policy.
This is an alternative way of providing life cover for the benefit of an employee's dependants, removing the need for the company to set up a registered group life scheme. As these policies can be written on a single life basis they are ideal for small businesses that have too few eligible employees for a group scheme. An additional advantage for high earners is that unlike a normal registered scheme, the lump sum benefits do not form part of the employee's annual or lifetime pension allowance. Relevant life comes with Bright Grey's unique Helping Hand service that will give advice and support when it comes to finding a permanent or temporary replacement for a key person within a business.
Bright Grey is the only mainstream provider to offer this type of policy on an individual, stand alone basis without the need for a group scheme to be in place. Some group risk providers will offer relevant life policies for this purpose but only as an opt out of the group scheme. The maximum amount of cover is 15 times the employee’s annual salary.
Jerry Bayman at Bright Grey says, “Many employees of larger companies will enjoy the tax efficient benefits of employer provided death in service. However, most group risk providers are reluctant to write schemes for less than 5 members. And while some employers will pay for the provision of personal policies, particularly for directors, the premiums on these will be taxed back on the employee as remuneration. Relevant life policies avoid this problem and are a highly tax efficient way of providing valuable life cover for dependents. They fill a gap in the market. Whilst aimed at directors and high earners they are suitable for any employee."