Find out about the difference between excepted group life vs relevant life plans so you know what decision you need to make for your business.
Excepted group life is the most common type of life insurance purchased by small businesses. It is also called “Group Life” and is provided through an employer-sponsored Group Policy. If you are a business owner and have employees, you may be able to take advantage of this type of coverage for yourself as well as for them at little or no cost your employees.
A relevant life plan, meanwhile, is a type of life insurance that offers a pay out to the beneficiaries of a director or employee if they were to pass away during their employment.
In this article, we’ll explore a bit more about excepted group life vs relevant life plans, how they interact, and how they differ.
Excepted group life vs relevant life plans
Excepted group life plans
In the United Kingdom excepted group life insurance is a form of life insurance for groups that are not eligible for ordinary group policies. The term “expected” refers to the fact that these policies are not regulated by the Financial Services Authority (FSA), which oversees all other forms of insurance in the U.K.
The FSA does not regulate excepted group life insurance because it has been specifically excluded from its jurisdiction by Parliament. This means that excepted group life insurance is often cheaper than other forms of life insurance since it does not have to comply with certain regulations that apply to ordinary group policies.
Why do businesses need excepted group life?
Many businesses find it difficult or impossible to obtain ordinary group life insurance because they have too few employees or too many people working in non-standard jobs. For example, an executive who works part-time may be considered low risk by an insurer, while a company with many part-time workers may be considered too high risk due to their inability to pay premiums on time or at all.
The FSA’s rules also make it difficult for companies with self-employed workers or contractors to obtain ordinary group policies. Many small businesses rely on self-employed workers because they allow them to expand their workforce quickly.
Relevant Life Plans
Relevant life plan insurance is a type of life insurance plan that can be paid for by a business for their employees while saving taxes on the premiums. The main difference between a relevant life plan and other types of life insurance is that it’s specifically designed for business owners and employees of businesses. Either because they are unable to go for a group life plan or if they want to provide certain business executives a higher or different level of cover to that offered by the group scheme.
Relevant life insurance is a product sold by insurers to individuals who are looking for an affordable way to protect themselves against the risks associated with being sick or dying prematurely. It covers a range of risks including critical illness, terminal illness and death— all of which can have devastating consequences if they occur at the wrong time in your life.
Why do businesses need relevant life plans?
A relevant life plan is an insurance policy that helps you protect your beneficiaries from the financial impact of your death.
Relevant life insurance might also be sold in conjunction with a pension fund or other investment strategy. But it is something that can be bought on its own if needed.
If you’re looking for the most cost-effective and worthwhile insurance deals, get in touch with WIS Business Protection. We make it easy for you to find the best deals on business protection insurance through our specialist advisory and support teams. For more information about excepted group life vs relevant life plans, our team is happy to advise.