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Relevant Life Insurance is a highly tax-efficient way for a business to provide life cover to its employees or directors. It works in a similar way to traditional life insurance — paying out a lump sum benefit if the insured person passes away — but is set up and paid for by the business, offering substantial savings on tax and National Insurance.
At Park Hill Financial, we specialise in helping small businesses and company directors put Relevant Life policies in place as part of a smart, cost-effective protection strategy.
A Relevant Life Policy is a life insurance policy paid for by an employer on behalf of an individual employee or company director. In the event of the insured person’s death (or diagnosis of a terminal illness, in some cases), the policy pays a tax-free lump sum to their chosen beneficiaries.
The key difference? It’s structured to be tax-efficient, both for the business and the employee.
Relevant Life policies are particularly beneficial for:
It’s ideal for companies with 1–20 employees who want to offer protection without setting up a full group scheme.
It’s a smart, cost-effective alternative to traditional life cover for business owners and employers wanting to do right by their team.
Relevant Life Cover is an individual policy, whereas a traditional Death in Service scheme is a group policy. Many smaller businesses don’t meet the minimum criteria for group cover, making Relevant Life the ideal solution for those wanting to offer meaningful benefits without the complexity and cost of a full group plan.
Setting up a Relevant Life policy requires expert advice to ensure the right structure, compliance with HMRC rules, and maximum tax benefit. At Park Hill Financial, we: