New product from Aviva offers tax break for Company Directors

Shaun Bond

Shaun Bond

British multinational insurance firm Aviva have launched the first relevant life plan with integrated critical illness cover.

The new product will allow Company Directors to put in place a life assurance policy with critical illness taken out in the name of the Ltd company.

Relevant life policies are a tax efficient way for Ltd company directors to put in place personal life and critical illness cover whilst the Ltd company pays for the premiums which are currently a tax deductible expense.

Previously all relevant life assurance policy providers had not included the critical illness believing it to fall outside of the tax rules of the policy.

Louise Colley, managing director of protection at Aviva, said: “Historically, relevant life policies have tended to only include a death benefit and terminal illness benefit, so I am delighted that following extensive research and advice from external legal counsel, we are able to offer a fully-compliant critical illness benefit on our new relevant life insurance.

“This is a market first and we believe that it will really help advisers write more protection business more easily.”

Shaun Bond of Fox Davidson Protect, an adviser of Business Protection for over 20 years commented: “I am delighted to see product innovation from protection providers and welcome this new product to the market. Relevant life policies are the smart way to protect the lives and now health of company directors and we expect to do a lot of business on the back of this launch.”

“Relevant life policies are the smart way to protect the lives and now health of company directors and we expect to do a lot of business on the back of this launch.”

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