Only 30% of UK SMEs know about Relevant Life Plans

They say what you don’t know won’t hurt you, but small and medium-sized enterprises (SMEs) could be missing out by not knowing about a potential means to save costs.

A study found that only 30% of SMEs in the UK had heard of a Relevant Life Plan (RLP) – a term assurance plan available to an employee of a willing employer, which provides a lump sum should employees be diagnosed with a terminal illness or pass away.

RLPs can be a cost-effective way for SMEs to offer employees the benefits of a protection policy. An RLP could save a business up to 57% per plan when compared to a standard life policy.

However, the State of the Nation’s SME research revealed that 86% of businesses with profits of less than £50,000 were not aware of the product, while 80% of businesses set up in the past two years had no idea such a plan existed.

The good news is 73% of businesses were open to the concept after hearing what it was about and only 9% rejected the possibility of taking out a policy.

If you would like to discuss a Relevant Life Plan, please contact Rebecca Lappin at Toogoods on 01483 285363 to discuss your requirements.