Relevant life policies can offer advisers an excellent path into the company protection arena. But how do they work? Jerry Bayman explains.
If they have personal cover they are either paying from post-tax income, or if the company is paying it will be a benefit in kind so by moving them into an RLP you can save them up to 49% of the cost.
If you have professional introducers speak to them about RLPs. They may have lots of small limited companies that will be ideal for this contract. Set up a mailing campaign, ensure that all partners are aware and raise awareness with their clients by asking those three simple questions.
- Do you have group pension or death in service schemes?
- Check out high earners. Will they have a problem with lifetime allowance? Have any taken pension protection?
- Are the employers prepared to offer increased benefits through salary sacrifice?
Relevant life policies can be used as the launch platform to find out more about a company and to start discussing the wider business protection issues that most small businesses face, such as ensuring loans are repaid and cash flow is protected on the loss of key people. Writing RLP business should be seen as the key to the door that could quite possibly open up other opportunities for advisers.
Jerry Bayman is national corporate sales manager at Bright Grey & Scottish Provident
Relevant life policies: effect on costs for a typical company: