How to Claim a Relevant Life Insurance Policy: A Step-by-Step Guide

Knowing how to claim a relevant life insurance policy means understanding that the process starts with a trustee, not the beneficiary. The trustee notifies the insurer, submits a certified death certificate and claim form, and once the insurer approves the claim, funds are paid to the relevant life trust, not directly to the family.

The trustees then sign release forms and distribute the payout to the named beneficiaries. Provided the policy was written under a discretionary relevant life trust, the payout is tax-free and falls outside the taxable estate. This guide explains each step so that trustees and families know exactly what to expect.

1. Who Starts the Claims Process?

The first step in the relevant life death claim process falls to one of the trustees on the trust, not to the beneficiaries themselves. This is an important distinction. The relevant life trust is a legal entity that owns the policy, so it is the trust that makes the claim on behalf of the beneficiaries.

If you are a trustee and need to make a relevant life insurance claim, contact the insurance provider directly. You will need to notify them that the life assured has died and request the claim forms. The insurer will ask for details about the circumstances of the death and, in all cases, a certified copy of the death certificate. Executive Life is authorised and regulated by the Financial Conduct Authority (FCA ref: AJO01072) and can assist trustees through this process from the first call.

What documents will the insurer ask for?

2. How Does the Insurer Assess the Claim?

Once the insurer has received notification and the death certificate, they will assess the claim. This includes confirming that the policy was in force at the date of death, that premiums were up to date, and that the circumstances of the death do not trigger any policy exclusions.

Most relevant life policies include standard exclusions, such as death by suicide within the first 12 months. If the claim falls within an exclusion period or the insurer has concerns about the circumstances, they may request additional evidence before proceeding. In straightforward cases, this stage moves quickly.

For claims involving unexpected deaths, the insurer will often liaise with the coroner’s office directly. You do not need to chase this. The insurer has established processes for obtaining medical information with the appropriate consent.

3. Payment to the Trust, Not Directly to the Family

This is the stage that surprises some families: the insurer does not pay the money directly to the beneficiaries. The relevant life trust payout goes to the trust first. This is by design and is the feature that makes the payout tax-free, because the funds pass through the discretionary trust, they sit outside the life assured’s taxable estate and are not subject to inheritance tax.

Once the funds are in the trust, the trustees are responsible for releasing them to the beneficiaries. To do this, all trustees must sign the insurer’s release forms. This typically includes individual trustees (such as a spouse or family member) and a representative of the business, the company that held the policy. For further detail on how a discretionary trust claim operates, see our guide to discretionary trusts and relevant life insurance.

What if the deceased was the sole director?

This is a common situation and one worth planning for. If the director who has died was also the sole director of the business, there may be no one currently authorised to sign the trust documents on behalf of the company.

In this scenario, the deceased’s shares will pass to the person named in their will. That person will need to appoint themselves as a director of the company, a process that can be completed at Companies House, before they can sign the release paperwork on behalf of the business. It is an extra step, but it is manageable, and having the right people named in your will makes it significantly easier.

If the company has another director already in place, they can fulfil this role immediately and sign the documentation without delay.

Claims Process Summary
A relevant life policy claim follows a defined sequence: (1) a trustee notifies the insurer and submits the death certificate and claim form; (2) the insurer assesses the claim and may request further evidence; (3) the insurer pays the funds to the relevant life trust; (4) all trustees sign release forms; (5) the trustees distribute the payout to the named beneficiaries. The entire payout is tax-free provided the policy is correctly written under a discretionary relevant life trust.

4. The Relevant Life Claim Process: Step by Step

5. Receiving the Payout: One Payment, Multiple Beneficiaries

Relevant life trusts make a single payment from the insurer to the trust. If there are multiple beneficiaries, for example, a spouse and children, then the trustees will need to manage the distribution themselves, according to the instructions in the trust deed.

In practice, the funds are often paid to the lead trustee first, who then distributes them as directed. This can be done informally among family members, but if the sums are significant or the situation is complex, a solicitor experienced in trust law can help ensure the distribution is correctly documented.

Once the funds have been distributed, the trust is formally closed. The relevant life policy death benefit has been paid in full, and no further action is required from any party. For a full explanation of the tax treatment, see our guide to the tax benefits of relevant life insurance.

6. How Should I Prepare Before a Claim Is Needed?

The process for making a business life insurance claim in the UK is designed to be as simple as possible at what is an extremely difficult time. However, it helps enormously if certain things are in order before a claim ever needs to be made:

• Keep a copy of the policy schedule and trust deed somewhere accessible to trustees.
• Make sure your will references your relevant life policy so it is not overlooked.
• Ensure at least two trustees are named, and that they know they are trustees.
• If you are the sole director, ensure your will addresses who should take on the directorship.

At Executive Life, we keep copies of all documents and policy records on file. If you or a family member needs to make a relevant life insurance claim and isn’t sure where to start, get in touch with us and we will walk you through the process from the beginning.

Last reviewed: June 2026 — Next review: April 2027. Tax rates and thresholds are subject to change. This article will be updated following each HMRC Autumn Budget or Spring Statement where relevant thresholds change.