Relevant Life Cover is one of the most tax-efficient ways of providing life insurance for an employee/director of a limited company.

• The policy is paid for by your business and the premiums are HMRC approved as a tax-deductible business expense (providing you meet strict conditions when setting up the policy).
• Premiums are not treated as a P11D benefit and don’t have any National Insurance implications for either the employee or the employer.
• A claim is paid tax free should the policyholder die.

A company director in the 40% tax bracket could make savings of up to 50% when compared to a personal life insurance because of the tax-efficiency of policy.

You can use our relevant life calculator below to work out your exact savings based on your chosen premium.

Relevant Life Policy Criteria & Eligibility

There are a number of conditions to ensure the policy passes the eligibility criteria for it’s tax status. The most important are:

• It cannot include critical illness insurance
• The policy must be set-up in a specific relevant life trust from inception.
• It is not being set-up purely for tax avoidance.

Providing these conditions are met relevant life cover can be an incredibly tax-efficient term assurance. The individuals who can benefit the most include:

• A director who currently uses their personal income to pay for life cover
• A small business owner who wants to cover a single employee
• Higher earners who are looking to avoid their death-in-service benefits becoming part of their lifetime allowance for pension purposes.

Compare Relevant Life Quotes & Get Specialist Advice

We are here to take the hassle out of setting up relevant life cover.

As specialist advisers we will help you navigate HMRC rules. We’ll ensure you meet the eligibility criteria and will structure the policy correctly to take advantage of the available tax savings.

Why Speak to Us?

You give so much to your business. That’s why you deserve first class service when it comes protecting it. Here’s why you should talk to us:

• No fee for our service
• Award-winning 🏆 independent insurance advisers, working with leading UK insurers
• You’ll speak to a dedicated specialist from start to finish
• 4133 and growing independent client reviews rating us at 4.92 / 5
• Claims support when you need it most
• Authorised and regulated by the Financial Conduct Authority. Find us on the financial services register.