Relevant Life

Relevant Life Cover is a tax-efficient life insurance policy, allowing companies to offer a death-in-service benefit to its employees (including salaried directors)

It’s set up by the company and pays out a tax-free lump sum on the death (or diagnosis of a terminal illness) of the person insured. The proceeds go directly to the employee’s family or financial dependants. Also, claims paid under Relevant Life Cover don’t count towards a person’s pension lifetime allowance

Benefits for Businesses

Relevant life cover is a tax-efficient alternative to group life insurance. A group life insurance scheme often works out cheaper for larger groups and those businesses with just one or even no members of staff wouldn’t usually qualify. Instead, relevant life insurance allows a company owner or director to still be able to cover themselves using their business rather than their own personal income, as well as providing the perk for employees. It also has the benefit of reducing the firm’s corporation tax bill as can be treated as an expense. More importantly, relevant life cover is a useful way of attracting and retaining staff as it shows you value their contribution and care for their wider family.