Relevant Life Insurance
A tax-efficient death-in-service benefit for directors and employees
Relevant Life Insurance is a powerful way for company directors, contractors, and small business owners to provide life cover to themselves and their employees—without the personal tax burden. Unlike personal life insurance, a Relevant Life Policy is paid for by your business, offering tax-efficient life cover that’s ideal for limited company directors, high-earning employees, and growing SMEs.
It's very tax efficient!
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How much could you save?
Enter your current personal protection premium, tax rates, and the calculator will provide the potential savings by moving to a relevant life plan.
What is Relevant Life Insurance?
Relevant Life Insurance UK is a type of employer funded life insurance that provides a death-in-service benefit to employees, including directors. It’s a tax-efficient alternative to traditional life cover, allowing a company to pay premiums on behalf of an individual without the costs being classed as a benefit in kind. If the insured person passes away during the term, the policy pays out a tax-free lump sum to their beneficiaries.
This kind of Relevant Life Protection is perfect for small businesses that don't have enough employees to justify a group life scheme.
How Does Relevant Life Insurance Work?
- Your company takes out a Relevant Life Plan on your behalf.
- The business pays the premiums—these are classed as allowable business expenses.
- Premiums are not taxed as a benefit-in-kind for the employee.
- If the insured dies while the Relevant Life Cover is in place, the benefit is paid tax-free to the beneficiaries via a discretionary trust.
- There's typically no inheritance tax due on the payout.
It’s an ideal solution for contractors, directors, and employees of SMEs looking for tax-efficient life insurance options.
Who Is It For?
- Company directors seeking a more efficient way to protect their families.
- Self-employed contractors operating through a limited company.
- Small business owners providing benefits for key employees.
- Employees looking for extra protection outside group schemes.
If you fall into any of the categories above, Relevant Life Insurance for contractors, directors, or employees might be the best financial move you make this year.
Speak to an expertRelevant Life Insurance Tax Benefits
There are several tax benefits of Relevant Life Insurance:
- Premiums are usually corporation tax deductible.
- No income tax or National Insurance is due on the premiums.
- Payouts are tax-free and outside the employee’s estate.
- Not treated as a benefit-in-kind, so there's no impact on personal tax.
It’s the smart way to turn company paid life insurance into meaningful savings—for both the business and the insured individual.
All statements concerning the tax treatment of products and their benefits are based on our understanding of current tax law and HM Revenue and Customs’ practice. Levels and bases of tax relief are subject to change.
Speak to an expertWhy Choose Relevant Life Cover?
6 reasons to choose Relevant Life Insurance
Here are six compelling reasons why thousands of directors and business owners are switching to Relevant Life Cover:
1. Death-in-Service Benefit
Provide peace of mind for families with a meaningful payout.
2. Significant Cost Savings
Move life insurance payments from personal to business, saving on tax.
3. No Benefit-in-Kind Charges
Unlike other perks, it won’t raise your personal tax bill.
4. National Insurance Exempt
Neither employer nor employee pays NI on the premiums.
5. Corporation Tax Relief
Premiums are usually classed as allowable business expenses.
6. Flexible, Tax-Free Payouts
A lump sum goes directly to loved ones, free of income and inheritance tax.
Speak to an expert
Tax-efficient life insurance that offers a death-in-service benefit for directors and employees
Watch our video to see why Relevant Life Insurance is an essential business expense.
Speak to an expertRelevant Life Insurance Cost & Quotes
How much does Relevant Life Insurance cost?
Costs vary based on age, cover amount, health, and term length, but one of the key advantages is that your business covers the premiums. This removes the cost from your personal budget while still protecting your family.
Use our Relevant Life Insurance Calculator above to calculate your savings.
Need help choosing between Relevant Life Insurance providers? Our team compares the market and provides tailored Relevant Life Insurance quotes that suit your business structure and financial goals.
Protect What Matters Most
A Relevant Life Insurance policy isn’t just about numbers—it’s about people. It ensures your loved ones don’t face financial hardship during the worst of times.
Relevant Life Insurance can support:
- Mortgage protection
- Clearing debts
- Replacing lost income
- Raising children
Your cover can be structured to fit your circumstances—whether you want level, increasing, or decreasing cover, or a policy that reflects mortgage repayment terms.
Who Can Apply for a Relevant Life Plan?
- UK residents
- Aged between 18 and 77 at time of application
- Salaried directors or employees of a limited company
- Not available to sole traders or partners (but employees of those businesses may qualify)
It’s ideal for those who want death in service Relevant Life cover without being part of a large group scheme.
Speak to an expertRelevant Life Insurance vs. Over 50s Life Cover
Wondering about the difference?
- Relevant Life Insurance: A term policy with tax efficiency, ideal for business owners, directors, and employees.
- Over 50s Protection: A whole of life personal policy, usually without medical underwriting, but not tax-efficient or business-funded.
If you're unsure which is right for you, a Broadbench adviser can help you find the perfect solution.
Speak to an expertResources for Business Owners, Contractors & Employers
Explore more insights to help you decide:
- Thinking to yourself... “It’s Too Expensive”, “My business is too small for that” or “I don’t have time to deal with this now...” Read our page on Why Business Protection Matters and why this common objections miss the mark.
- Read our blog on why Essential Business Protection for Contractors is more than a nice-to-have and how to safeguard your business, income and clients.
- Winging it” isn’t a great strategy. That’s where Business Protection policies step in to save the day! Read our blog on The Business Protection You Haven’t Thought About
- Download your FREE Broadbench Guide To Tax Savings
- Case Studies: Relevant Life in Action
- Download: Broadbench - Employee Benefits
- Download: Broadbench - Tax and Financial Risks
Get Your Relevant Life Insurance Quote Today
Let Broadbench help you find the best Relevant Life Insurance UK solution. Whether you're a contractor, director, or SME employer, our experts are here to guide you from quote to cover.
- Fast, no-obligation quotes
- Compare top Relevant Life Insurance providers
- Maximise your tax efficiency
- Protect what really matters
Broadbench – Business Protection. Built for Life.
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Get the facts
Download our guide to Relevant Life Insurance and see how transforming your monthly premiums into a legitimate business expense could benefit you and your loved ones.
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FAQs
Am I eligible to take out a Relevant Life Insurance policy?
You must have a limited company to benefit from the tax savings that a relevant life insurance policy offers. If you do not have a limited company then standard Life Insurance will offer you the protection you need.
Do I get any money back if I don't die before the Relevant Life Insurance policy term ends?
No. There’s no cash value at any time. Just like standard Life Insurance at the end of your Relevant Life Insurance policy term you stop making payments and your cover ends.
Can my mortgage be covered with Relevant Life Insurance?
If you have an interest-only mortgage, your outstanding mortgage loan stays the same until you repay it at the end of the mortgage term. Level Relevant Life Insurance could cover this type of mortgage.
How does Relevant Life Insurance work? What do I need to know?
Like standard Life Insurance, it provides your loved ones with a large tax-free, one-off payment, or monthly payments if you pass away. It can be used to pay the mortgage off or help your family with living expenses. You are covered only for the duration (term) of the policy and cover only lasts while you keep up monthly premiums. Monthly payments can be reduced by combining this with a Critical Illness policy.
The key difference between Life Insurance and Relevant Life Insurance is that with Relevant Life Insurance the cost of the premiums is moved from your own pocket to your company expenses. This saves you tax and reduces the cost of your monthly premiums.
Additionally, this is not treated as a benefit-in-kind; the premium is not included as a P11D benefit, nor are premiums subject to National Insurance payments for the employer or employee.
There is significant tax relief with a Relevant Life plan and your business can claim Corporation Tax Relief on the premiums. Plus, the payout itself is tax-free.
What is Terminal Illness Cover?
Terminal Illness Cover will pay out when you contract an illness/ disease that has no known cure or has progressed to a point where it cannot be cured, and you aren’t expected to live longer than 12 months.
What's the difference between Relevant Life Insurance and Over 50s protection?
The main difference is that Relevant Life Insurance is a tax-efficient term policy, so it covers you for a specific amount of time, while over-50 life insurance is a whole of life policy, so it covers you for the rest of your life.
Typically to take out a Relevant Life Insurance policy you need to be aged between 18 and 77 to apply, and your coverage stops at the end of the policy term. You choose a cover amount, and if you want your cover to remain the same, be protected from the effects of inflation, or decrease over time broadly in line with a repayment mortgage or loan. You can take out a single or joint life insurance policy.
If you’re not sure which one might be right for you, speak to a Broadbench financial adviser.
What’s the difference between Relevant Life and Life Insurance?
Life Insurance is cover that you pay for with your own money. However, if you are set up as a limited company, you can pay for your Life Insurance through your business, as a tax-deductible expense, saving you 20%. This is known as Relevant Life Insurance.
How can I set up a Relevant Life Insurance policy?
If you’re looking to set up your Life Insurance, our advisers can help you find the right policy for you and your family. Get in touch.