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Relevant Life Insurance Calculator

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Calculate your Company’s Tax Savings

Relevant Life Insurance is one of the most tax-efficient ways of providing life cover for an employee/director of a company. The premiums are paid for by a company and Relevant Life cover is often considered a tax-deductible business expense (providing you meet strict conditions when setting up the policy).

A company director in the 40% tax bracket could make significant savings on life cover by opting for Relevant Life Insurance over personal cover, because the tax-efficiency of Relevant Life Insurance means it works out cheaper than a personal life insurance plan. The Drewberry Relevant Life Calculator below will help you calculate how much you could save with Relevant Life Insurance.

Relevant Life Insurance Calculator

Calculate the tax savings you can make by taking out a company paid Relevant Life Insurance policy instead of a personal Life Insurance policy.

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How does Relevant Life Insurance work?

Relevant Life Insurance is a form of Life Insurance paid for by a company, with the families of directors/employees as the beneficiaries of the policy. The company does not receive any of the payout from a Relevant Life Insurance policy – a company looking for such cover should consider Keyman Insurance, which is different from Relevant Life cover.

Relevant Life cover is usually an allowable business expense and can be deducted from companies’ corporation tax bills. The Drewberry Relevant Life Insurance Calculator can show the potential savings you and your company could see from using Relevant Life cover, especially if you’re currently paying for Life Insurance out of your own pocket.

Also, as policy is written into a relevant life trust, the beneficiaries receive the payout from Relevant Life Insurance tax-free.

Moreover, Relevant Life Insurance premiums are not treated as a P11D benefit and don’t have any National Insurance implications for either the employee or the employer. Drewberry’s Relevant Life Insurance Calculator will take into account all of these deductions for you.

Victoria Slade Independent Protection Expert at Drewberry

Remember, for Relevant Life Insurance to retain its tax-efficient status, strict conditions need to be met to keep HMRC happy.

There must be no Critical Illness Insurance attached to the Relevant Life policy, and the primary aim of setting up the cover can’t be seen to be tax avoidance.

Victoria Slade
Business Protection Expert at Drewberry

Providing all those conditions are met, though, Relevant Life cover can be an incredibly tax-efficient method of providing life protection. It can offer:

  • Life Insurance to small business owners who want to cover their employees
  • Life Insurance for higher earners who are looking to avoid their death-in-service benefits becoming part of their lifetime allowance for pension purposes
  • Life Insurance for directors of small companies who currently use their personal income to pay for life cover.

If any of the above apply to you, then it’s worth calculating the cost of Relevant Life Insurance to work out how much you could save.

Calculate your Relevant Life Cover Savings

Relevant Life Insurance offers corporation tax relief, no implications for National Insurance contributions for either the employer or the employee, and tax-free payouts to beneficiaries.

That means calculating the cost of Relevant Life cover compared to personal or ‘normal’ life cover is mostly a series of deductions! Why not try the Drewberry Relevant Life Cover Calculator to see what you could save?

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Need Some Help With Relevant Life Insurance?

Now you’ve calculated the cost of Relevant Life Insurance and found out how much you could save the next step is ensuring you keep all of those tax advantages.

There are a number of pitfalls that you mustn’t fall into to keep you on the right side of the HMRC rules for Relevant Life Insurance and retain its tax-efficient status. Our expert financial advisers are best-placed to help you navigate this area and set up the policy for you, including the necessary relevant life trust.

Why Speak to Us?

We started Drewberry because we were tired of being treated like a number and not getting the service we all deserve when it comes to things as important as protecting our health and our finances. Below are just a few reasons why it makes sense to talk to us.

  • There is no fee for our service
  • We are independent and impartial
    Drewberry isn’t tied to any insurance company, so we can provide completely impartial advice to make sure you get the most appropriate policy based solely on your needs.
  • We’ve got bargaining power on our side
    This allows us to negotiate better premiums for you than you going direct yourself.
  • You’ll speak to a dedicated expert from start to finish
    You will speak to a named expert with a direct telephone and email. No more automated machines and no more being sent from pillar to post – you’ll have someone to speak to who knows you.
  • Benefit from our 5-star service
    We pride ourselves on providing a 5-star service, as can be seen from our 2335 and growing independent client reviews rating us at 4.92 / 5.
  • Benefit from the protection of regulated advice
    You are protected. Where we provide a regulated advice service we are responsible for the policy we set-up for you. Doing it yourself or going direct to an insurer won’t provide this protection, so you won’t benefit from these securities.
  • Claims support when you need it the most
    You have support should you need to make a claim. The most important thing when it comes to insurance is that claims are paid and quickly. We are here to support you during the claims process and make sure it’s as smooth and stress free as possible.

Extremely satisfied with the help and advice from Drew, since the beginning him understood what I was looking for and have the patience to help me out with all my questions and doubts. Didn’t tried to be push or annoying calling me all the time like so many did before. At the end we find the perfect medical policy for me and my daughter that covers everything that we need. I more than recommend them and if in the future I need something else for sure I will contact them again. Giving only 5 stars because I can’t give 6!!!!

Natasha Caversan Mucci
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