Mr and Mrs Tomlinson are in their 50s and have run their own successful UK business for many years. They are both directors of the company, each earning good salaries and are also 50:50 shareholders. The business is cash-rich and the owners are deciding how to invest the accumulated funds. They have 3 children who have pursued their own careers and have shown no interest in working at the family business.
Mr Tomlinson purchased a term policy some years ago and pays the premium on this life insurance policy from his taxed pay. Mrs Tomlinson does not have life insurance. Both are in good health and expect to work until at least aged 65.
Vie International can offer this couple life insurance policies that qualify as Relevant Life Cover. Since they are both key employees, their company can pay the premiums thus enhancing the couple’s benefits package while reducing taxable profits. As long as neither employee benefits from the policy, the premium payment is not a taxable benefit. The policy is structured so their children are named beneficiaries, which allows the children to receive the payout without being subject to inheritance tax.