Relevant Life Insurance
A tax-efficient death-in-service benefit for directors and employees
Take control of your protection by moving your monthly life insurance payments from your pocket to your limited company expenses. It's very tax efficient!
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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.
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6 reasons to choose Relevant Life Insurance
1. Death-in-service benefit
Relevant Life Insurance gives your employees a fantastic death-in-service benefit, keeping your team engaged and feeling valued.
2. You see immediate savings
By paying for life insurance through your business, you can reduce your personal outgoings by hundreds if not thousands of pounds per year.
3. There’s no impact on your existing benefits
Relevant Life Insurance isn’t treated as a benefit-in-kind.
4. NI doesn’t apply
Relevant Life Insurance premiums aren’t subject to National Insurance payments.
5. You can claim tax relief
Your business can claim Corporation Tax Relief on your monthly Relevant Life Insurance premiums.
6. It’s a flexible, tax-free payout
There is no tax to be paid on Relevant Life Insurance benefits and no restriction as to what the payout is used for.
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.
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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.
Can I cancel my Relevant Life Insurance policy at any time?
Yes. You have a 14-day cooling-off period from your policy start date, or from when you get your policy documents (whichever is later), to change your mind. If you want to cancel within this time, we’ll refund any premiums you’ve paid. Remember, there’s no cash value and, if you cancel your policy, you won’t be able to make a claim.
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.