In my own working life, I am fortunate to say that I have been employed by large life companies in the UK, SME’s and now running my own business so it is fair to say that I have a fairly rounded opinion on different forms of remuneration and employee benefits. When you work for a company you will most likely be given access to two benefits – the death in service scheme and the workplace Pension and for many companies they may not have high enough numbers of staff to then implement a death in service scheme. The death in service scheme can be incredibly efficient for both Employers and Employees alike providing a valued benefit for both. Where there are not enough numbers to set up a death in service scheme there is an alternative – The Relevant Life plan and this is effectively a 1 person death in service plan whereby the company owns and funds the policy and insures the chosen members life and places the sum assured/benefits in trust.
We have seen an incredible rise in one-person limited companies and the Relevant Life plan solution has been an efficient way to address death in service benefits lost on leaving the employed world or indeed members of staff who find themselves breaching the Pensions Lifetime Allowance – LTA. Please get in touch at paul@astute-financial.co.uk for more information.
