Relevant life insurance is a cost-effective way to set up individual death-in-service benefits for staff in companies that are too small to consider setting up a full group protection schemes.

The business takes out the plan on the life of an employee, with instances of director-level employees taking out cover for themselves. The cover can be tailored to your specific requirements.

What is relevant life insurance?

A Relevant Life Plan offers a cost-effective way for an employer to arrange term assurance on the life of an employee, including directors.

It's designed to pay a lump sum benefit payable to the employee’s family if the person covered dies or is diagnosed with a terminal illness, whilst employed during the term of the policy.

Are Relevant Life Plans cost-effective?                   

Our Relevant Life Plans are uniquely tailored to your specific requirements. The cost to an employer can work out much less than the cost to an employee arranging an equivalent personal life policy.

This type of plan is usually viewed as an allowable business expense by HMRC, all premiums and paid benefits qualify for full Income Tax relief, National Insurance relief and Corporation Tax relief.

This means premiums could be reduced by up to 49% compared to a typical life policy if the employee is a higher rate taxpayer. For a basic rate taxpayer this figure could be up to 40%.