Relevant Life Insurance
Tax-efficient life cover, paid for by your business
- Life cover for directors and employees
- Premiums paid by the business
- Potential Corporation Tax savings
- No employee National Insurance on premiums
- Free, no-obligation advice
Tax-efficient life cover, paid for by your business
Relevant Life Cover is a tax-efficient way for a business to provide life insurance for an employee or director.
Instead of paying for life insurance personally from your take-home pay, your company takes out the policy and pays the premiums.
If you pass away during the policy term, the cover can provide a lump sum for your loved ones. Simple protection, with some potentially valuable tax advantages.
Get Your Free Quote
If you're a company director or employee paying for life insurance personally, Relevant Life Cover could be a more tax-efficient way to get the protection you need.
The policy is taken out and paid for by your company rather than you paying the premiums personally.
Providing the policy forms part of your remuneration package and meets HMRC's requirements, premiums can normally be treated as an allowable business expense.
Relevant Life Cover premiums are not normally subject to employer or employee National Insurance contributions.
Premiums aren't usually treated as taxable income or a Benefit in Kind for the employee.
The policy is designed to provide a cash lump sum to your chosen beneficiaries if you die during the term of the policy.
Relevant Life Cover can be particularly useful for:
You must generally be an employee of the business to qualify. This can include directors who are employees.
Sole traders, equity partners and LLP members aren't normally eligible to cover themselves because they aren't classed as employees for Relevant Life Cover purposes.
It's pretty straightforward.
Your company applies for a Relevant Life policy covering you or an eligible employee.
The company pays the monthly or annual premiums directly.
Relevant Life policies are normally written into trust for the people you want to benefit from the cover.
If you die while covered and a valid claim is made, the policy can pay a lump sum to the beneficiaries of the trust.
Potentially, yes.
If you're a company director, personally paying £100 towards a life insurance policy means you first have to extract that money from your company and potentially pay tax and National Insurance along the way.
With Relevant Life Cover, the business pays the premium directly. Where the policy qualifies for the relevant tax treatment, this can make the overall cost to you and your company considerably lower than paying an equivalent premium personally.
The exact saving will depend on your circumstances and the tax treatment applicable to your business.
Get Your Free Quote
Life insurance and tax don't need to be complicated. We'll help you understand whether Relevant Life Cover is suitable for you, compare your options and arrange the right level of protection for your circumstances. Keep it easy, keep it honest and make it a doddle.
Get Your Free QuoteFill out the quick form below to get started with your quote.
*Important information: Tax treatment depends on your individual circumstances and may change in the future. Whether premiums qualify as an allowable business expense is ultimately determined by HMRC. Relevant Life Cover is a protection policy and has no cash-in value.