Life insurance arranged and paid for by an employer for an eligible employee or company director. It can provide a lump sum for their family if they die during the policy term, subject to the policy terms. Some plans also include terminal illness cover. This is different from critical illness cover; definitions and exclusions depend on the insurer.

It may suit an eligible employee or working director of a limited company, including a director of a small company. Eligibility depends on the insurer and your employment arrangements. Sole traders cannot arrange it for themselves, and owning shares alone does not make you eligible. I’ll check whether this or another type of life cover is suitable.

Premiums may qualify as an allowable business expense when the relevant conditions are met. Tax relief is not guaranteed: it depends on your circumstances and tax rules may change. I’ll explain the protection options and help you discuss the tax treatment with your accountant.

A relevant life plan must be written in a suitable trust from the start. For a valid claim, benefits are paid to the trustees for the beneficiaries under the trust. I’ll help you understand the paperwork and choose appropriate trustees.

It may suit small companies, high earners or directors wanting an individual death-in-service benefit.