Relevant Life in Focus

Download the Free Guide (PDF)

Executive Summary

This guide provides a concise overview of Relevant Life insurance, including how it works, who it’s suitable for, and the key features to be aware of.

What is relevant life?

• A type of death-in-service benefit
• Pays a lump sum when you die, similar to life insurance
• Paid for by your business rather than personally
• Policies are outside of your estate for inheritance tax purposes

Who is it for?

• Directors and salaried partners of a limited company
• Sole directors of a ‘company of one’
• Limited company directors aged between 18 and 73

How does it work?

• You take out a relevant life policy through your business instead of a personal policy
• Premiums are paid by the business as an allowable expense
• This can reduce corporation tax and personal outgoings
• You must be a permanent resident of, and physically living in, the UK

Key features:

• Lump sum paid on death
• Tax-efficient structure through the business
• Policies sit outside of your estate for inheritance tax purposes
• Can be arranged for other employees, including a spouse or partner employed by the business

Things to consider:

• Only available to limited companies
• Must meet residency requirements (UK-based)
• Policy terms and eligibility vary depending on circumstances

This guide is perfect for limited company directors looking for a tax-efficient way to arrange life insurance through their business.