Relevant Life Insurance

A tax-efficient way for small businesses looking to offer death-in-service benefits to employees and salaried directors.

Protecting your employees and their families

A relevant life plan is a life insurance plan available to employers to provide a lump sum benefit for their employees. It’s designed to pay a lump sum if the person covered dies or is diagnosed with a terminal illness, while in employment during the term.

Who are the policies for?

  • Companies with less than 50 employees wishing to provide their directors with their own individual death in service benefits in a tax-efficient way

 

  • Employers looking to provide lump sum benefits to their employees

 

  • Those with too few employees to set up a group scheme

 

  • High earning individuals, such as directors, who are looking for lump sum benefits without affecting their pension lifetime allowance

Why Relevant Life?

It can help smaller businesses attract and retain high-calibre staff by offering them attractive benefit packages in a tax-efficientway.

It can be a tax-efficientway for directors to make provision for their family and have their life insurance paid for by the company.

It allows employees, who are members of group life schemes, to top up their life cover without affecting their annual and lifetime allowances.

More about Relevant Life

Relevant Life could be suitable for employees of:

  • Sole traders
  • Partnerships
  • Limited liability partnerships (LLPs)
  • Limited companies
  • Charities

 

It’s not suitable for:

  • Sole traders (in their capacity as business owner)
    An equity partner in a partnership
    A member of a LLP

The plan must be written under trust from the start with the beneficiaries being the employee covered and their family. This ensures that the benefit is paid to an individual as required by the legislation governing relevant life plans.


The employee is a beneficiary so that if they leave the business, the plan can be assigned to them as a personal plan.

Yes, cover is available for all employees, as long as the business pays them a salary.

No, Relevant Life Cover is only available for employers to insure and cover their employees.

No. You will need a separate critical illness plan.

There are a number of different options available, the most common is that many providers can give the old employee a new own life insurance policy on the same terms as the existing contract, without the need for further underwriting.

Experience you can trust

Speak to us to discuss your requirements and the options available, book a call (no obligation) to speak to one of our advisers here.