Relevant Life Cover is a tax-efficient life insurance policy, allowing companies to offer a death-in-service benefit to its employees (including salaried directors). It's set up by the company and pays out a tax-free, lump sum on the death (or diagnosis of a terminal illness) of the person insured. The proceeds go directly to the employee's family or financial dependants.

Relevant life might benefit:

  • Businesses too small for a group life scheme

  • High-earning employees who might exceed their personal pension lifetime allowance. Claims paid under Relevant Life Cover don't count towards a person's lifetime allowance unlike group life schemes

Cover features:

  • Counts as a tax-deductible business expense

  • The premiums are paid monthly

  • Guaranteed premiums

  • Benefits usually free from inheritance tax