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.
Protect the people who depend on you
Provides a lump sum for your beneficiaries if you die while the policy is in force.
Cover tailored to you
Choose a level of life cover and policy term to suit your circumstances and the protection your family needs.
Paid by your company
Your limited company pays the premiums rather than you paying personally from post-tax income.
Potential tax advantages
Qualifying premiums may receive Corporation Tax relief, with normally no benefit-in-kind charge for the insured director.
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.
Relevant life insurance
Your limited company arranges the policy and usually pays the premiums.
- Company pays the premiums
- May qualify for Corporation Tax relief
- Normally no benefit-in-kind charge
Personal life insurance
You arrange the policy yourself and pay the premiums from your after-tax income.
- You pay the premiums personally
- Paid from after-tax income
- Normally no tax relief on premiums
See a detailed comparison in relevant life vs personal life insurance.
How to set up a new policy
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.