Relevant Life Insurance

Relevant life insurance is a type of policy that a business can take out to provide life insurance for an individual employee.  It’s an alternative way employers can provide death-in-service benefits for employees outside of a registered group life scheme.

Where it's suitable

Premiums may be treated as an allowable expense for the company in calculating its tax liability.

Relevant life insurance can be purchased in addition to a group scheme. It doesn’t count towards annual or lifetime pension allowances; this may be particularly appealing to high-earning employees.

Group schemes usually only cover up to 4 times an employee’s salary. However, sometimes, people need more support. With Relevant Life Insurance, we can cover up to 35 times salary (depending on age).

What it provides

Relevant life insurance gives employees free life insurance, as it’s applied for and paid for by the business. It is written into trust and pays out a lump sum to trustees for the benefit of the beneficiaries if employees die or are diagnosed with a terminal illness that meets our definition while employed during the policy term. It’s a benefit that can make staff feel valued. And it’s tax-efficient too - for all parties.

Premiums may be treated as an allowable expense for the company in calculating its tax liability.

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.

Two doctors walking up stairs

Best Doctors®

We give the person insured access to Best Doctors for invaluable second medical opinions. Their knowledge helps the individual and their immediate family get the right diagnosis, treatment and care.

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 you and your family to tools to help manage your family’s health and wellbeing from anywhere in the world, 24/7.

DISCOVER MORE

Smart Health and Best Doctors are non-contractual benefits which can be withdrawn at any time without notice.

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 30 Apr 18