You must have come across several insurance policies which promises to provide some or the other benefit to the insured person. Most of the times we usually just ignore the fact that how important it is to get a proper life insurance policy. It is out duty to provide a secured futur to our family in case something unfortunate happens with us. And what better than getting a Relevant Life Insurance for this purpose.
This policy, unlike others, is not taken by individuals but business organizations, for instance, the employers and directors. The policy is drawn so to provide monetary support to the family members of those employees who gets diagnosed with a terminal illness or in case of demise of the employees.
Relevant life insurance is a combination of the traditional life policies and offer several benefits, both to the employers and their employees.
Need for a Relevant Life Insurance :-
Relevant Life Insurance are beneficial for people who have some kind of loan which needs to be repaid. In case of death, the loan amount will be required to get repaid by the family members of the deceased person. As such, to secure the payment of the loan amount the money received by way of life insurance can be used.
This policy program is effective for business organizations who are working on a small scale and want to offer some kind of benefit toits employees.
Who can draw out the policy?
In case of Relevant Life Insurance only those firms which are registered and located in the United kingdom can draw or take out the policy for their employees. All the rights pertaining to the ownership of the policy lies with the company. Even LLP firms can also apply for getting Relavant life insurance for their employees and directors.
Several factors are considered when deciding about the amount for which an individual employee will be insured.
Tenure of the policy :-
The time period for which the insurance policy is taken out depends on the firm. However, it is advisable to draw out a relevant life insuraance for a longer period of time so to increase the benefit which will be provided to the family of the insured employee. Relevant life insurance allows the option to transfer the policy in case the insured employees decides to leave the company.
Employees who are part of any company registered in U.K. are eligible to apply for a Relevant Life Insurance.