Relevant life insurance savings calculator (2026/27)
Compare the estimated cost of paying for life insurance personally with paying the same premium via your limited company.
£
Select the rate applying to the additional salary needed to pay the premium personally.
The standard employee rate is 8%, falling to 2% above the Upper Earnings Limit.
Select the Corporation Tax rate you want to use for this comparison.
Estimated cost comparison
Cost
Personal
Relevant life
Monthly premium
£200.00
£200.00
Gross salary required
£344.83
—
Employee Income Tax
£137.93
£0.00
Employee National Insurance
£6.90
£0.00
Employer National Insurance
£51.72
£0.00
Company cost before Corporation Tax relief
£396.55
£200.00
Corporation Tax saving
£75.34
£38.00
Estimated net company cost
£321.21
£162.00
Monthly saving
£159.21
Annual saving
£1,910.48
Percentage saving
49.57%
At a £200.00 monthly premium, paying through the company could reduce the estimated after-tax company cost from £321.21 to £162.00 per month.
This calculator provides an estimate based on the tax rates selected. It assumes the relevant life premium and equivalent salary cost qualify for Corporation Tax relief. Actual tax treatment depends on your circumstances and the policy.
Corporation Tax is shown at 19% by default, although many companies pay a higher effective rate once marginal relief applies. Income Tax is calculated using the highest rate selected, commonly 40% or 45%.
Relevant life insurance is normally paid by the company and does not give rise to employee Income Tax, NICs or a P11D benefit, provided the policy meets the relevant qualifying conditions. The company may also be able to claim Corporation Tax relief on the premiums where the usual conditions for deductibility are met.
Savings can appear significant because personal life cover is paid from income that has already been subject to tax and National Insurance, whereas a qualifying relevant life policy is paid directly by the company.
This calculator provides an estimate only. For an exact figure based on your age, health, and required cover, request a quote below.
