Relevant life cover.
Smarter life cover, paid by your business.
A tax-efficient way for your limited company to provide personal life cover for directors and employees — with the benefit paid to their family.
What is relevant life cover?
Relevant life cover is an individual death-in-service policy that an employer takes out for a director or employee. If the insured person dies during the policy term, the payout goes — via a trust — to their family or chosen beneficiaries, not to the business.
Because the company pays the premiums, it can be a highly efficient alternative to a director paying for personal life cover from their own taxed income. It's especially popular with directors of small limited companies who don't have enough employees for a group scheme.
How relevant life can help.
Features vary between insurers. We'll explain exactly what each option includes.
Paid by the business
Premiums are paid by the company rather than from personal, already-taxed income.
Typically tax-efficient
Premiums are usually not treated as a taxable benefit for the employee and may be an allowable business expense.
Benefit goes to family
The payout is made through a trust to the insured person's loved ones.
Ideal for small companies
A practical option where there aren't enough employees for a group life scheme.
Retain and reward
A valued benefit that helps attract and keep key people.
Separate from pensions
Benefits are generally separate from pension arrangements.
Who it's for.
- Directors of limited companies
- Small businesses wanting to offer death-in-service
- Key employees you want to reward and retain
- Businesses replacing personally funded life cover
Things to consider
- Relevant life cover isn't available to sole traders or equity partners in partnerships.
- Tax treatment depends on individual circumstances and HMRC rules, which can change.
- It provides life cover only — critical illness cover can't be included.
That's exactly why advice matters — we'll talk you through the detail.
Get a personalised relevant life quote
Free, no-obligation and tailored to your circumstances.
Getting covered is easy.
Getting the right protection shouldn't be complicated. Here's how we help.
Talk to us
Tell us about you, your family or your business in a free, relaxed conversation — by phone, video or in person.
Get a clear recommendation
We research the options and explain what we recommend, why, and what it costs — in plain English.
Cover in place, and beyond
We handle the paperwork, keep your cover under review and are here to support you if you ever need to claim.
Relevant Life Cover FAQs
Who can have relevant life cover?
It's designed for employees, including salaried directors, of limited companies and other incorporated businesses. It isn't available for sole traders or equity partners.
How is it more tax-efficient than personal life cover?
Because the company pays the premium, the director avoids paying for cover from personal income that's already been taxed. Premiums are usually not a P11D benefit and may be deductible for corporation tax, subject to HMRC's rules. We recommend you also speak to your accountant.
Can I keep my relevant life policy if I leave the business?
In some cases a new employer can take over the policy, or it may be converted to a personal plan, depending on the insurer. We'll explain the options at the outset.
Does the business receive any of the payout?
No. The payout goes to the insured person's beneficiaries through a trust. If the business needs protecting, look at key person insurance.
Let's talk about relevant life.
Book a free, no-obligation consultation. We'll explain your options clearly and help you choose with confidence.
Free initial consultation · No obligation · Friendly, plain-English advice
The information on this page is for general guidance and isn't personal advice. All cover is subject to the insurer's terms, conditions, exclusions and underwriting. Tax treatment depends on individual circumstances and may change.