Relevant life cover, a perk that works for everyone.
Smaller companies often can’t offer a group death-in-service scheme. A relevant life policy gives a director or employee individual life cover, paid for by the business and written for their family.
Individual life cover paid for by the company, with the payout going through a trust to the employee’s family, often more tax-efficient than a personal policy.
Is it right for you?
Company directors of limited companies
Small firms wanting to offer a valued benefit to staff
High earners whose personal policies are paid from taxed income
How it works
The company takes out and pays for a life policy on the director or employee. If they die during the term, the payout goes into a trust for their family, not to the business.
Why directors like it
Premiums are usually treated as a business expense and are not normally taxed as a benefit in kind, so it can cost much less than paying for the same cover personally. Tax treatment depends on HMRC rules and individual circumstances.
What we check
We’ll make sure the policy and trust are set up correctly, the cover amount is within insurers’ limits, and it fits alongside any personal cover you already have.
The choices, explained.
There’s no single right answer. These are the decisions we’ll go through with you, so you understand exactly what you’re buying.
Director cover
For owners of limited companies who want life cover paid by the business.
Employee cover
A benefit for key staff when a group scheme isn’t practical.
Trust set-up
We help you complete the relevant life trust so the money goes to the right people.
Review personal cover
Sometimes moving cover to a relevant life policy makes sense. We’ll show you both sides.
A company director in Altrincham
Mark was paying for a personal life policy out of his salary. We arranged a relevant life policy paid by his limited company for the same amount of cover.
His accountant confirmed the treatment, and the net cost to Mark fell noticeably.
An illustration of how this cover can work, not a real client. Your own recommendation will depend on your circumstances.
Relevant life cover: your questions.
Can’t see yours? Call us, we’re happy to talk it through.
All FAQsWho can have relevant life cover?
Directors and employees of a limited company or LLP. Sole traders and equity partners can’t, as there’s no separate employer.
Does it count towards my pension allowance?
No. Relevant life policies don’t count towards pension allowances.
Can the business get the money?
No. The payout must go to the employee’s family or financial dependants, through the trust.
Ready to talk it through?
No call centres, no scripts. Just a real person who’ll listen, explain your options in plain English and help you decide.