Relevant Life Insurance

Relevant life insurance allows business owners to provide their employees with death-in-service benefits outside a registered group life scheme. It’s designed to pay out a lump sum on death or diagnosis of a terminal illness. Straightforward and cost-effective, it can also be tax-efficient for the business and the employee.

The cover must be placed in trust to ensure any benefit may be paid to the person covered or their beneficiaries. We offer a dedicated Relevant Life Trust, available via our online journey or as a paper trust. We cannot advise on whether putting any particular plan into trust would be suitable in your client’s particular circumstances and would recommend that they take professional legal advice on the trusts suitability.

With relevant life insurance, we keep it simple and we make it accessible too.

Even the smallest of businesses can offer this benefit; allowing them to attract top talent with a competitive benefits package.

Where it's suitable and why it's needed

If your client’s business is too small to qualify for a group scheme, they can use relevant life insurance as a tax-efficient benefit for individual employees.

Relevant life insurance can be purchased in addition to a group scheme. As relevant life cover doesn’t count towards annual or lifetime pension allowances, it’s an added benefit that appeals to the highest earning employees.

Benefits of relevant life insurance

Premiums may be treated as an allowable expense for the business in calculating its tax liability – provided the local inspector of taxes is satisfied the payments qualify under the ‘wholly and exclusively’ rules.

Premiums are usually viewed as an allowable business expense, not a benefit-in-kind. This means employees don’t need to pay income tax or National Insurance on premiums - a potentially significant saving.

Any payout from the policy will not count towards an employee’s lifetime pension allowance.

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Smart Health

From on-demand consultations with UK based GPs, to Best Doctors - the expert case management service with the world’s top medical specialists, our Smart Health service is a convenient way to connect your customers to tools that help them to manage their health and wellbeing from anywhere in the world, 24/7.

Smart Health is a non-contractual benefit that could be changed or withdrawn in the future.


Literature and support materials

Relevant Life Insurance - Key Facts

This document describes what is covered by Relevant Life Insurance, who can buy it and how it works

Download Updated 20 Feb 22
Reasons why - Relevant Life Insurance

A handy guide to provide examples of what a ‘reasons why’ letter could look like and scenarios where relevant life insurance is suitable.

Download Updated 31 Jan 23
Relevant Life Insurance - Cover Details

This explains how the cover works and the terms and conditions for Relevant Life Insurance

Download Updated 20 Feb 22
Relevant Life - Adviser guide

Get to grips with the basics of the cover, learn more about how to set it up and the tax efficiencies and find out why AIG.

DOWNLOAD Updated 21 Feb 22