Relevant Life cover for UK directors
A Relevant Life policy gives you personal life cover funded by your limited company. Typically an allowable business expense, with no benefit in kind. That can cut the true cost by up to half compared with paying from your own salary.
Illustration only. Assumes salary funds the premium at your marginal rate, employee NI of 8% (basic) or 2% (higher/additional), employer NI of 15%, and that premiums qualify as an allowable expense. Tax treatment depends on individual circumstances and may change.
Same cover, same insurers you already know, just owned and paid the tax-efficient way.
Premiums are paid by your company and, where HMRC's "wholly and exclusively" test is met, usually qualify for corporation tax relief, unlike a personal policy paid from taxed income.
Premiums aren't treated as a P11D benefit. No income tax on you, no employee NI, and no employer NI for the company. The leak in a personally paid policy simply disappears.
The policy is written into a discretionary trust from day one, so the payout goes to your family quickly and normally free of inheritance tax. It never touches the company either.
Relevant Life is for employees, and salaried directors of a limited company count. That's the whole trick.
From quote to cover in a couple of weeks. We handle the paperwork, including the trust.
Two minutes: your age, cover amount, and company details. We search leading UK insurers for your best price.
The company is the policy owner and pays the premiums. You're the person insured.
The policy is written into a discretionary trust with your chosen beneficiaries; this is what keeps the payout tax-efficient.
Your business pays monthly, claims the expense, and your accountant smiles at year end.
Tell us the basics and we'll come back with quotes from leading UK insurers, plus the exact tax saving for your situation. No obligation, no pressure, and your details are never sold.