As a company director, you understand the importance of financial stability and business resilience in both your personal life and your company. You’ve worked hard to build both. Now it’s time to ensure what you’ve accumulated is properly protected and that future business growth is secured.
One of the most tax-efficient business protection tools at your disposal is Relevant Life Insurance, a highly strategic solution that protects your loved ones, benefits your business, and saves you money.
Why Wealth Protection Matters
You’ve likely already considered how to safeguard your personal wealth and business assets, from business restructuring and refinancing to long-term care planning and estate planning. But often overlooked is the foundation of any comprehensive wealth protection strategy: life insurance.
If you have dependents, business debt (like a mortgage), or simply want to ensure business continuity and peace of mind for your family, life insurance is not optional; it’s essential. And if you’re a director of a limited company, there’s a smarter, more tax-efficient way to arrange it.
What is Relevant Life Insurance?
Relevant Life Insurance is a specialist life cover for directors and employees. It allows businesses to offer life insurance benefits tax-efficiently, without the complications of a group scheme.
Unlike traditional Death in Service policies, which may be taxable, Relevant Life Insurance offers a standalone, portable, and cost-effective alternative.
How It Works
- The policy is set up and paid for by the company.
- It covers an individual (typically a director or key employee).
- If the insured person dies or is diagnosed with a terminal illness, the policy pays a tax-free lump sum to their beneficiaries.
- The policy is written into trust, meaning the payout bypasses the estate and goes directly to loved ones.
- It qualifies as a business expense, reducing the company’s corporation tax liability.
- There is no impact on income tax or National Insurance, and the policy doesn’t count as a benefit-in-kind for the employee.
In short, it’s up to 49% more tax-efficient than personal life insurance.
Why Directors Should Pay Attention
As a company director, Relevant Life Insurance offers a clear financial advantage:
- Your company pays the life insurance premiums – not you personally.
- You save on tax – premiums are a deductible business expense.
- Your loved ones receive a tax-free lump sum with no inheritance tax.
- It’s portable – you can take it with you if you leave the company.
Who Is It For?
Relevant Life Insurance is ideal for:
- Company Directors looking to protect their family while reducing tax.
- High Earners.
- Key Employees whose loss would significantly impact the business.
- Small Business Owners who want to offer employee benefits without a group scheme.
How It Compares to Death in Service
| Feature | Relevant Life Insurance | Death in Service |
|---|---|---|
| Tax Efficient | ✅ | ❌ (often taxed as a benefit-in-kind) |
| Portable | ✅ | ❌ (ends with employment) |
| Tailored for Small Businesses | ✅ | ❌ (requires group scheme) |
| Employee Contributions Needed | ❌ | Sometimes |
For directors and small businesses, Relevant Life Insurance wins on flexibility, tax savings, and long-term value.
More Than Just Life Cover
Many company directors also choose to add Critical Illness Cover or explore other business protection insurance to build a comprehensive safety net. This is especially important for business continuity planning and asset protection.
Remember: Relevant Life Insurance policies require medical underwriting. They’re best suited for directors and employees who are integral to the company and likely to stay long-term.
A Strategic Money Move
If you’re searching for a smart, tax-savvy way to protect your wealth—and your family—Relevant Life Insurance is the answer. You can:
- Save money
- Protect your loved ones
- Offer valuable employee benefits to key staff
- Improve your company’s financial resilience
It’s not just life insurance. It’s a financial strategy—one that supports your future, rewards your foresight, and reflects your commitment to your business and your family.
Let’s Make It Happen
Setting up a Relevant Life policy is straightforward—but to ensure it’s properly structured and compliant with HMRC guidelines, it’s best to speak with your Broadbench specialist business protection adviser who understands company taxation and corporate insurance planning.
Protect what you’ve built. Secure what’s to come. Make the smart move with Relevant Life Insurance.
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