The level of cover is subject to normal underwriting limits and so the maximum level of cover is restricted to up twenty times salary and remuneration package (including pension contributions).
However, the limits and definition of remuneration packages vary between insurers and independent financial advice must be sought.
The limits and definition of remuneration packages vary between insurers and independent financial advice must be sought.
Most insurers set a maximum level of cover at £10 million but unique cases above this level will be considered up to £100 million.
The relevant life policy must:
- Only provide a lump sum death benefit payable before the age of 75.
- Only be payable to an individual or a charity.
- Benefits must be paid through a discretionary trust.
- Beneficiaries are normally restricted to family members and dependents.
And must not:
- Provide any other benefit.
- Be capable of having a surrender value.
- Be used mainly for the purpose of tax avoidance.