Relevant Life Cover: the most tax-efficient way to protect your people

For many business owners, protecting their team or fellow directors with life cover can feel unnecessarily expensive or complicated.

Traditional personal policies are often paid from taxed income, and for smaller businesses, setting up a full group life scheme may not be practical.

This is where Relevant Life Cover offers a simple and highly tax-efficient solution.

A smarter way to provide life cover

Relevant Life Cover allows businesses to provide individual life insurance for employees or directors, without the cost and complexity of a group scheme.

It is particularly valuable for small and medium-sized businesses looking to offer meaningful protection while remaining tax efficient.

With this type of policy:

· The business pays the premiums

· The policy is written into a trust

· The employee’s family receives a tax-free lump sum if the worst happens

Why businesses are choosing Relevant Life Cover

Beyond the protection itself, one of the biggest advantages is the tax efficiency.

In many cases:

· Premiums can be treated as a business expense

· There is no benefit-in-kind for the employee

· No National Insurance contributions are payable

· Payouts sit outside of the employee’s estate

For directors and higher earners, this can make a significant difference compared to arranging cover personally.

More than just protection

Relevant Life Cover also plays an important role in strengthening your overall employee benefits package.

It can help:

· Provide a death-in-service style benefit without a group scheme

· Support staff retention and engagement

· Demonstrate a commitment to employee wellbeing

Is it right for your business?

Relevant Life Cover is particularly suited to:

· SMEs without large employee benefit schemes

· Company directors seeking tax-efficient protection

· Businesses wanting to enhance benefits in a cost-effective way

For many firms, it offers a simple way to combine protection, tax efficiency and employee value in one solution.