Relevant Life Insurance

What is relevant life insurance?

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Relevant life insurance is a life insurance policy that a company or business can offer to its staff, employees and directors. It is arranged by the company and will pay out a tax-free lump sum upon the death of the employee.

Relevant Life Insurance

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What are the benefits of relevant life insurance?

For company director life insurance in particular, the benefits of insuring the owners and directors of a business are various, including:

  • Relevant life insurance premiums can be paid by the business
  • Premiums are usually an allowable business expense
  • A cash benefit can be paid to the director's beneficiaries upon his/her death
  • Relevant life insurance is usually set up in a trust, making it tax-efficient

Relevant life cover is an employee benefit that might enable smaller businesses to attract and retain staff with a tax-efficient employee benefits package.

Frequently asked questions

How much is relevant life insurance?

The cost of relevant life insurance will depend upon a number of factors, as would any life insurance policy. These factors include:

How can I get a quote for relevant life insurance?

When you click the 'GET A QUOTE' button, completing the online form will send your contact details to an independent financial advisor, who is authorised and regulated by the FCA. He will contact you by phone and/or email to discuss your application in more detail.

If you wish to proceed with an application for relevant life insurance, he will guide you through the initial steps without cost or obligation.

Am I eligible for relevant life insurance?

Relevant life insurance policies are available to salaried employees and directors of UK-based business - self-employed, sole traders and members of limited liability partnerships are not eligible for a relevant life insurance policy.

Who pays the monthly premiums for relevant life insurance?

The employer pays the premiums on behalf of their employee(s) and the policy is written in Trust, so that a tax-free lump sum can be paid out in the event of their death or terminal illness diagnosis.

What are the advantages of a relevant life insurance policy in a trust?

Typically a relevant life insurance plan is set up in a tax-efficient trust, with the employee's next of kin or dependents specified as beneficiaries. This has the advantage of minimising any tax liabilities and also ensuring that the life insurance policy can be paid out with the minimum of delay.

As well as at the death in service of the employee, the relevant life insurance plan will usually pay out in the event that the employee is diagnosed with a terminal illness.

What other benefits are available to me as a company director?

A lot will depend upon your individual circumstances, but among the financial benefits available to a company director are:

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