Business protection insurance
Relevant Life Insurance
Bright Life Protection: Relevant Life Insurance
Tax-Efficient Life Cover for Directors and Employees
At Bright Life Protection, we specialize in finding the best Relevant Life Insurance policies for company directors, business owners, and employees. This tax-efficient life insurance solution offers the benefits of traditional life cover without the need for a group life scheme—making it ideal for small businesses. Our service compares policies from top UK providers to ensure you get the best coverage suited to your needs.
What is
Relevant Life
Insurance?
What is
Relevant Life
Insurance?
Relevant Life Insurance is a life insurance policy offered through a company, providing financial security for an employee’s family if they pass away. It is designed for small businesses and director who want to offer life cover as an employee benefit but may not have enough staff to set up a group scheme.
The key advantage is its tax efficiency—premiums are usually deductible as a business expense, and the benefit is paid out tax-free to the employee’s beneficiaries.
Why choose
Bright Life Protection's
Relevant Life Insurance
Consider these three important facets of Relevant Life Insurance provided by Bright Life…
Tax Efficient
Premiums are paid by the business and are typically tax-deductible as a business expense. The payout is made tax-free to the employee’s family, providing maximum financial benefit.
Flexible Cover
You can tailor the policy to suit individual employees or directors, providing peace of mind to those who are vital to your business.
No Group Scheme Needed
Relevant Life Insurance provides the benefits of life cover without needing to set up a costly group life insurance plan, making it ideal for small businesses or firms with just one or two employees.
For whom?
Who Should Consider
Income Protection?
Income protection is an excellent choice for these groups
Small Business Owners
Providing life insurance for key individuals without the need for a full group scheme
Company Directors
Offering life cover in a tax-efficient way
High-Earning Employees
As a valuable employee benefit that boosts retention and provides financial security for their families
For whom?
Who Can Benefit from Relevant Life Insurance?
Relevant Life Insurance is ideal for these three groups
How Does Relevant Life Insurance Work?
The business pays the premium on behalf of the employee or director, and in the event of their death, the policy pays out a lump sum to the family or beneficiaries. This payout is tax-free, providing essential financial protection to their loved ones. Relevant Life Insurance is a standalone policy, which means that even if the employee leaves the company, they can continue the policy by taking over the premium payments.
Providers We Work With
At Bright Life Protection, we work with several leading UK providers to ensure you get the most suitable policy for your business’s needs. Our trusted partners include:
AIG Life
Aviva
Legal & General
Scottish Widows
Zurich
We compare quotes across these providers to find you the best options, ensuring your policy is competitive and tailored to your requirements.
about our protection
Why Choose Bright Life Protection?
We understand that choosing the right life insurance policy for your business can be complex, but we’re here to make it easy. With access to the top UK providers and expertise in business protection, we can help you navigate the options and find the most suitable policy for your needs.
Get Started Today
Protect your key employees and directors with tax-efficient, tailored life insurance from Bright Life Protection. Contact us today for a personalized quote, or speak to one of our expert advisers to learn more about Relevant Life Insurance.
Frequently Asked Questions.
Relevant Life Insurance is a tax-efficient life insurance policy that companies can take out for directors or employees. It provides life cover without needing a group life scheme, making it ideal for small businesses. The business pays the premiums, and the employee’s family receives a lump sum payout if the individual passes away.
Relevant Life Insurance is available for salaried employees, including directors of limited companies. It is not typically available to sole traders, partnerships, or the self-employed, but it’s ideal for businesses with one or more key employees.
Relevant Life Insurance is tax-efficient because the premiums are usually considered an allowable business expense, which means the company can deduct them for corporation tax purposes. Additionally, the payout to the employee’s beneficiaries is typically free from income tax, inheritance tax, and National Insurance contributions, provided the policy is written into trust.
Yes, if the employee or director leaves the company, they can take over the policy by continuing to pay the premiums personally. This is often referred to as a “continuation option” and ensures that the individual can maintain life cover even after they leave the business.
Group life insurance is typically provided by larger companies with many employees and covers multiple individuals under one scheme. Relevant Life Insurance is designed for smaller businesses or companies that don’t want to set up a group life scheme but still want to offer life cover to individual employees.
If the Relevant Life Insurance policy is written into trust, the payout is typically free from inheritance tax and income tax. This ensures the beneficiaries receive the full benefit amount.
Yes, many businesses combine Relevant Life Insurance with other forms of business protection, such as Key Person Insurance or Shareholder Protection, to ensure comprehensive financial security for the company and its key employees.
The amount of cover you can secure will depend on the specific provider and the insured individual’s salary and financial circumstances. However, most insurers offer flexible cover limits to meet your business and employee needs.
If the business is unable to continue paying the premiums, the policy will lapse, and the life cover will end. It’s important to consider the long-term affordability of the premiums when selecting a policy.