The relevant life policy is for the corporate world. It has been a major success among IT companies as it has become a tool for the companies to retain their top employees with greater remuneration. The reason for its popularity is also due to the fact that several employees are demanding it from the companies. Buying a personal life insurance is really expensive from the perspective of an employee especially when the sum assured is high. Therefore, they want their employee to bear it for them without compromising with pension allowance. The following guide will give you a complete idea why Relevant Life Plan is becoming extremely popular.
Greater Cover – A relevant life cover provides up to 25 times remuneration. The employee has to provide his salary, dividends, and bonuses documents and accordingly the remuneration will be calculated. There is no questioning session like showing proof of financial records and likewise when a person applies for a personal life insurance.
Continuation – The Relevant Life Policy is highly flexible and it takes care of the employee in a complete manner. When a company or an employer initiates a policy and pays the premium, in case the employee leaves the company, the employee can still continue the transfer. This continuation can be done by the employee himself by paying the premiums personally or he can ask the new employer to pay it for him. There is no need for underwriting or providing medical evidence.
Additional Benefits – There are certain relevant life plan that not only provide death benefits but the remuneration is applicable even during serious illness. In such cases, it also acts like a health insurance of highest degree because most of the general health insurance cover a certain amount and that amount may not be enough during the treatment of serious illness.
Tax Benefits – There are tax benefits for both the employer and the employee. This encourages the employers to take such policies for a handful of employees in the company. There are no income tax, no corporation tax, capital gain tax levied on such business expense. For the employee, there is no inheritance tax applicable in case of accidental death.
Getting the sum assured is pretty easy and it is one of the easiest and customer-friendly insurance of them all. Unlike a group life scheme, the policy has huge benefits for the employer and the employee. They can use it as a bonus for high-performing employees to increase the productivity level.