Relevant life insurance for limited company directors
Relevant life insurance is a way for UK limited company directors to arrange life cover through their company. Premiums are paid by the business rather than from post-tax income, often with corporation tax relief and no benefit-in-kind charge.
Why directors choose relevant life
Relevant life insurance is a tax-efficient way for limited company directors and employees to protect their families. The policy is owned and paid for by the company, and any benefit is paid to the insured person’s beneficiaries through a trust.
- Paid by your company – premiums may be treated as a business expense rather than personal spending.
- No benefit-in-kind – qualifying policies are not treated as a taxable benefit for the insured director.
- Corporation tax relief – premiums may reduce your company’s taxable profit.
- Trust protection – proceeds are usually paid tax-free to your chosen beneficiaries.
How it compares to personal cover
When you buy a personal life policy, premiums are normally paid from income that has already been subject to income tax and National Insurance. With a relevant life plan, the limited company pays the premiums instead.
For many directors this can significantly reduce the effective cost of life insurance compared with a comparable personal policy.
See a detailed comparison in relevant life vs personal life insurance.
How setup works
Setting up a policy is straightforward. Quotes are arranged through our regulated partner Broadbench Ltd (FCA No. 590288), who handle the process from start to finish.
- Confirm the level of cover and policy term – or estimate using our calculator.
- Broadbench compares quotes from major UK insurers.
- The application is completed by your company and the policy is written into a discretionary trust.
- Once approved, the company pays the premiums directly to the insurer.
Relevant life insurance for professionals
Many directors discover relevant life insurance when researching life cover for their profession. These guides explain how company-paid policies can work for different types of limited company directors.
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 usually 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 employed elsewhere. See leaving your company.