Save 62% in tax using relevant life insurance

What is Relevant Life Insurance?

Relevant life insurance is a type of life insurance that has been specifically designed for business owners like you. It’s a type of death-in-service benefit which means the business pays the premiums as a qualifying expense, even though the cover if for you and your family personally.

Relevant life insurance is a type of life insurance that has been specifically designed for business owners like you. It’s a type of death-in-service benefit which means the business pays the premiums as a qualifying expense, even though the cover if for you and your family personally.

You can also insure spouses that either work or have shares in the business making this a great solution for many company directors in the UK.

Wondering how much you can save? To calculate the savings on a policy we will need to create a quick quote for you first. This can take just 60 seconds and all we will need is your name, age, smoking status and the amount you wish to ensure. We can then obtain a quote from every insurer in the market and show you the saving that can be made. In many cases this is tens of thousands of pounds.

Key Benefits?

Get a quote from every UK insurer in just 60 seconds. No big pitch, no passing your data to numerous brokers, just a great personal service with no pressure.

How Relevant Life Insurance Works

Relevant life insurance is the same as a regular type of life insurance. You pay an agreed monthly premium for a set level of cover, for a set period. If you are unfortunate enough to die inside that period, the policy pays the agreed cover to your family tax-free to help sooth any financial challenges they might be facing.

The policies are offered by all of the major insurers that you might have heard of such as L&G, Zurich, Royal London, Aviva and several more.

The main benefit of relevant life insurance is the tax efficiency. All premiums are paid for by the business as a qualifying expense which means the business can claim corporation tax relief against the cost. There is also no benefit in kind tax which means the average company director saves 62% compared to using a policy that is paid personally.

Why Our Relevant Life Insurance Plans Stand Out.

Choosing us for your relevant life insurance needs means you’re working with a team of experts who understand the intricacies of tax-efficient life insurance solutions. Our plans are designed with business owners in mind, offering maximum flexibility and affordability without compromising on coverage.

We pride ourselves on transparent pricing, exceptional customer support, and the ability to tailor policies specifically to meet your business and personal needs. Our advisors take the time to understand your situation, ensuring you get the most tax-efficient and valuable coverage available.

£20,787 Saving With Relevant Life Insurance

Mr Jones is the Director of Jones & Co Limited and is looking for a £1,000,000 life insurance policy. He could pay for a policy personally from taxed income, or he could pay for a relevant life cover through the company. He is a higher-rate tax payer.

The premium for both types of policy is identical and both are offered by L&G in this example. The premium for £1,000,000 cover is £85 a month and the policy will last for 20 years.

If Mr Jones needs to withdraw £85 net a month from his company to pay for the premium on a personal policy, the cost to the company would be £155.46. The increased costs take into consideration the corporation tax and dividend tax paid by the company and Mr Jones to receive a net £85.

If the premium was paid by the business via relevant life cover, then the business would receive corporation tax relief on the £85 a month premium. This would reduce the real cost to £68.85 and save Mr Jones £20,787 over the lifetime of the policy.

Relevant life insurance as employee benefits?

Employees don't need to be part of a group life scheme to get life insurance. They can also use relevant life cover as a form of death in service benefits.

Details like the employee's age, employee's remuneration, and even life expectancy will all be considered when providing benefits of relevant life insurance.

There is no tax liability or change to the net income of the employee. The life insurance doesn't count towards their pension lifetime allowance, and the benefit won't be counted towards the deceased's estate.

This matches the same benefits and tax benefits of a group scheme with benefits paid to the employee's family when the person covered dies.

What are the next steps?

Finding the right relevant life insurance for you and your company can be difficult. There are twelve primary insurers, and obtaining quotations from all of them takes time. You need to know which insurers are more friendly towards things like BMI or minor medical conditions.

At Executive Life, we specialise in finding the right policy for you. We will show you quotations from every insurer in the market so you can choose the right cover for you.

We will also complete all of your application documentation over the phone and save you the hassle of multiple paper application forms and endless admin. Our team will cover all of that for you.