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. They are tax deductible as a business expense thereby saving corporation tax of at least 21%. 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 0208 432 7333.
Frequently Asked Employee Benefits Questions
Very helpful and professional advice. Would recommend using Drewberry if you are looking for help with Relevant Life Insurance.
I cannot commend highly enough the quality of advice and service I have received from Drewberry. Jake kept me fully informed throughout the process until the insurance was finalised.
Great job on Life insurance. Phoned back quickly. And quickly found me good alternative when issue with first provider. All super easy to set up and do.