Why directors choose relevant life

Relevant life insurance is a tax-efficient way for directors and employees of limited companies to protect their families. The policy is owned and paid for by the company, and any benefit is paid to the insured’s beneficiaries through a trust.

• Paid by your company — premiums are treated as a business expense rather than personal spending.
• No benefit-in-kind — where HMRC rules are met, it isn’t taxed as a personal perk.
• Corporation tax relief — premiums may reduce your company’s taxable profit.
• Trust protection — proceeds are paid tax-free to your chosen beneficiaries.

Learn how relevant life policies work

How it compares to personal cover

When you buy a personal life policy, you pay premiums from your net income — after income tax and National Insurance. With a relevant life plan, your company pays instead. For many directors, the combined tax savings make the total cost 40–50% lower than a comparable personal plan.

See a detailed worked example in Relevant life vs personal life insurance.

How setup works

Setting up a policy is simple. Broadbench, our independent financial adviser partner, handles the process from start to finish:

1. Confirm the cover amount and term — or estimate using our calculator.
2. Broadbench compares quotes from major UK insurers.
3. The application is completed by your company, and the policy is written into a discretionary trust.
4. Once approved, the company pays the premiums directly to the insurer.

Read the full setup guide

Common questions

Is it a business expense?

Premiums are normally deductible for corporation tax if the policy is provided wholly and exclusively for business purposes. See our tax guide.

Is there a benefit-in-kind?

Qualifying policies are not treated as a taxable benefit for the insured director. See tax benefits.

What happens if I close the company?

You can cancel the policy, or in some cases transfer it if you become an employee elsewhere. See leaving the company.

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