Relevant life insurance.
Company-funded life insurance can be a way for a business to provide an individual death-in-service benefit to an eligible employee or director, without a full group scheme.
Friendly advice, tailored to your circumstances. Product terms, underwriting and exclusions apply.
How does this cover work?
A relevant life policy is usually owned and paid for by the employer, with benefits arranged for nominated beneficiaries through an appropriate trust. Eligibility, policy structure and tax treatment have to meet applicable rules.
The right amount and type of cover depends on what you want to protect, your existing arrangements and your budget. An adviser can explain which features matter and what a policy may not cover.
Things worth checking
- The tax treatment is not automatic: employer corporation tax deductibility and employee treatment depend on the facts and the rules applicable to the policy.
- Discuss the arrangement with your accountant or tax adviser as well as a protection adviser.
- Check eligibility, cover limits, trust paperwork and what happens if employment ends.
Frequently asked questions.
Is relevant life insurance tax deductible?
Employer premiums may qualify for favourable tax treatment where applicable conditions are met. No tax saving is guaranteed; your accountant should confirm treatment for the company and individual.
Can it cover a company director?
Potentially, for an eligible employed director of a suitable business, subject to the provider's rules and the policy structure.
Not sure what to choose?
We can talk through your priorities, existing cover and available options, with no pressure to take out a policy.
Talk to a protection adviser ↗No policy provides cover for every eventuality. The insurer's terms, conditions and exclusions determine the benefits payable.
Related protection options.
Business protection insurance
Protecting a business isn't only about buildings or equipment. A business can also depend on the people who generate income, manage clients and make decisions.
Explore coverEmployee benefit protection
Group protection benefits can help employers offer meaningful support to their teams, from death-in-service cover to income protection and healthcare.
Explore coverKey person insurance
Could your business absorb the loss of a founder, specialist or major revenue generator? Key person cover can help protect trading continuity following a qualifying death or critical illness.
Explore coverFurther information: HMRC: life insurance for employees and other key persons ↗ This is general guidance, not a personal recommendation or tax advice.