Relevant life insurance is a life insurance policy that your limited company takes out and pays for on your behalf. It’s designed for business owners, company directors, and employees — and compared to taking out a personal life insurance policy, it can be significantly more tax-efficient.

As a director, if you take out a personal life insurance policy, you pay for it from your post-tax income. With a relevant life policy, your company pays the premiums — and those premiums are typically treated as an allowable business expense and are not subject to corporation tax, income tax, or National Insurance.

For many directors, this means getting the same cover for considerably less money overall.

• Premiums paid by the company — treated as a business expense

• No income tax or National Insurance on the premiums

• Death benefit paid free of inheritance tax (if written in trust)

• Available to directors and employees

• High levels of cover available

📝 Tax treatment depends on individual circumstances. We always recommend discussing this with your accountant alongside your insurance adviser.

Not quite. Group life insurance is for larger businesses covering multiple employees under one scheme. Relevant life insurance is ideal for smaller companies and individual directors who want tax-efficient cover without the setup and cost of a group scheme.

We’ll explain your options in plain English and help you find the most cost-effective way to protect yourself and your family through your business.