Aegon UK has launched a relevant life product that allows employers to set up single-life cover for employees in a tax-efficient manner.

The product offers single death-in-service plans covering the life of employees.

The employer acts as the policyholder and pays the policy premiums. The employer is not subject to National Insurance contributions for the premiums paid and should be able to claim a reduction against corporation tax, as long as HM Revenue & Customs guidelines are met.

The employee is not liable for income tax or NI contributions on the premiums paid or on any benefits received.

The level term plan is available for those aged between 18 and 75 and the maximum term is 50 years.

Bright Grey, Scottish Provident, Legal & General, PruProtect and Zurich all offer relevant life policies.

Highclere Financial Services principal Alan Lakey says: “These are plans with great potential for tax-efficient life insurance, as long as the local tax inspector thinks they qualify.”