How Relevant Life
Cover Works
What Is a Relevant Life Plan?
A life insurance policy taken out and paid for by an employer to cover an employee or company director.
Who Can Have One?
It can suit employees and directors of eligible businesses, but sole traders generally cannot arrange one for themselves.
Potential Tax Efficiencies
Premiums may be allowable business expenses and may not be a benefit in kind when the relevant conditions are met.
Cover Held in Trust
The policy is normally placed in a Relevant Life trust so any valid payout can pass to the chosen beneficiaries.
When Might It Suit?
It may suit small companies, high earners or directors wanting an individual death-in-service benefit.
Why Consider Relevant Life
Cover?
A Relevant Life Plan can help a company provide valuable individual life cover without setting up a group scheme.
Business-Funded Protection
The business pays the premiums for cover arranged on the life of an eligible employee or company director.
An Individual Benefit
Cover can be tailored for one person, making it useful for smaller firms that may not need a full group scheme.
Protection for Their Family
The policy is normally written in trust, helping any valid payout reach the chosen beneficiaries efficiently.