Answered by Andrew Jenkinson
Thanks for your question regarding relevant life insurance.
What is Relevant Life Insurance?
Any employee of a business can have a relevant life policy which is arranged by their employer. The business can be a limited company, a partnership, a charity or a sole trader.
The employee can be a company director, so the good news is that your company can purchase Relevant Life Insurance for you.
Salaried partners taxed as schedule E can be covered but equity partners and sole traders taxed under schedule D cannot.
Relevant life policies can only be single life policies, so you can’t include a spouse.
Tax Efficient Life Insurance
Relevant Life policies really are a really tax-efficient way to arrange life cover as opposed to paying for premiums out of your net income.
Premiums are tax-deductible as a business expense, thereby saving corporation tax of 19%. They are not a benefit in kind so not subject to income tax or national employment contributions from the employer or employee.
If you would like any more information about relevant life insurance please see our Relevant Life guide or contact one of our team of advisers on 02074425880.
Frequently Asked Employee Benefits Questions
Excellent service from start to finish. Both Jack & Jake were both helpful and polite through the process. I would recommend Drewberry to family and friends.
Oliver was great at explaining things, with patience. He called back when he said he would, and spent a lot of time to make sure the policy meets my needs.
Victoria Slade has been consistently prompt, personable, efficient and a great communicator. It is the first time that we have had straightforward dealings with financial services since becoming qualified doctors 20 years ago. Well done!