Relevant Life Insurance

Relevant life insurance is a type of policy that a business can take out to provide life insurance for an individual employee or director of a business.

In order to benefit from cover, you must be a UK resident and anemployee of a UK-resident Limited Company (England, Wales, Scotland and Northern Ireland only).

• A UK-resident employee will usually include company directors (on PAYE) and salaried partners. Members of a Limited Liability Partnership (LLP) and sole traders (as owners of their own business) are not eligible to be covered under a Relevant Life Plan.

Many directors and business owners are still paying for life insurance out of their own pocket not knowing there is another way. The good news is that you may be able to use a relevant life insurance policy and pay for it as a business expense.

‘Relevant Life’ is a product that can be classed as a business expense, this means that you can put it through your books as an expense and save tax in the process legitimately.

Typically even as a basic rate taxpayer, you could save as much as 36% and of course the higher tax band you are the better the savings.

*based on average savings on RLP policies.