Relevant Life Cover

Relevant life insurance is a cost-effective way to set up individual death-in-service benefits for staff in companies that are too small to consider setting up a full group protection schemes. A business takes out the plan for the director or key employees. The cover can be tailored to your specific requirements. Speak to a qualified adviser for further information.

Our advisers are able to set up Relevant Life Plans tailored to your specific requirements. The cost to an employer can work out much less than the cost to an employee arranging an equivalent personal life policy.

This type of plan is usually viewed as an allowable business expense by HMRC, all premiums and paid benefits qualify for full Income Tax relief, National Insurance relief and Corporation Tax relief.

This means premiums could be reduced by up to 49% compared to a typical life policy if the employee is a higher rate taxpayer. For a basic rate taxpayer this figure could be up to 40%.

Who can take out a Relevant Life Plan ?

Employers looking to provide death-in-service benefits, but with too few employees to set up a group scheme.
Directors wishing to provide their own individual death-in-service’ benefits without taking out a scheme on all employees.
High earning individuals, such as directors, where death-in-service does not form part of their ‘lifetime allowance’ (£1.073 million 2023/24).

Relevant life insurance plans are not available where there is no employer/employee relationship.

For example, sole traders, equity partners of a partnership or equity members of a Limited Liability Partnership.