What is Relevant Life Cover?
Relevant Life Cover is a life insurance policy arranged by a company for the benefit of a director or employee.
Unlike personal life insurance, the premiums are paid by the business rather than from your personal income.
For many company directors this can make life cover significantly more tax efficient.
The policy is written into trust and designed to pay a tax-free lump sum to your chosen beneficiaries if you pass away during the policy term.
Why many company directors choose Relevant Life Cover
Relevant Life Cover is often used because it can provide the protection families need while also making use of tax advantages available to UK limited companies.
Potential benefits can include:
- Premiums paid by the business rather than personally
- Possible Corporation Tax relief on premiums
- No National Insurance on premiums
- No Benefit in Kind in most cases
- Payout typically paid free of Income Tax
- Policy written in trust for your family
Tax treatment depends on personal circumstances and current legislation.
Who is this designed for?
Relevant Life policies are typically suitable for:
- Limited company directors
- Business owners taking income through salary and dividends
- Small business owners with a limited company
- Professionals running their own company
This type of policy is not normally available to sole traders or partnerships.
Answer a few questions below to see if you qualify.
Why many directors prefer this over personal life insurance
When life insurance is paid personally, premiums are usually paid from taxed personal income.
Relevant Life Cover allows premiums to be paid directly by the company, which may create significant tax efficiencies.
For example:
A company director paying £100 per month personally might need to earn significantly more in gross income once tax and national insurance are considered.
When arranged through the business, the cost to the director can often be lower overall.
Your adviser can explain how this may apply to your circumstances.
What Relevant Life Cover helps protect
Relevant Life policies are designed to provide a financial safety net for your family.
Paying off a mortgage
Replacing lost income
Covering family living costs
Financial stability for loved ones
The policy pays a lump sum to your chosen beneficiaries if you pass away during the policy term.
How It Works The Process is Simple
1
Check eligibility
Answer a few quick questions to see if Relevant Life Cover may be suitable for you.
2
Speak with an adviser
If you qualify, a specialist adviser will contact you to discuss your options.
3
Arrange your cover
Your adviser will recommend suitable protection based on your needs and circumstances.
Why should you arrange your cover through us?
Our advisers specialise in protection solutions for business owners and company directors.
We help clients:
- Understand whether Relevant Life Cover is suitable
- Compare options from leading UK insurers
- Structure policies correctly for tax efficiency
- Ensure the policy is written in trust for beneficiaries
Our goal is to make sure your protection is set up correctly and aligned with your needs.
