What is relevant life

Relevant Life Cover calculators

This calculator shows the potential savings your client could make when arranging life cover for their employee through Relevant Life Cover compared to an ordinary life cover plan.

Savings from a relevant life policy

Cost to employee Life Cover* Relevant
Life Cover
Monthly premium £0.00
Employee national insurance contribution £0.00
Employee income tax £0.00
Cost to employer Life Cover* Relevant
Life Cover
Monthly premium £0.00
Employer national insurance contribution £0.00
Total gross cost
Less corporation tax relief
Tax adjusted total cost
Total saving with a Relevant Life Cover Plan per year  
Total saving with a Relevant Life Cover over 20 years  
Now you know how much you can save, download our FREE Special Report and learn more about how Company Directors have stopped paying tax on life cover.
Relevant Life

Get the most tax-efficient way to protect your family

Most company directors are savvy enough to have life insurance, but very few realise they could save thousands in premiums by taking advantage of a Relevant Life plan.

In fact, according to a research paper published by Legal & General in 2015, just 28% of UK Limited Company Directors have heard of Relevant Life policies.

The thing is, Relevant Life cover could make great business sense for you and your family because it’s extremely tax-efficient and allows a higher level of cover than traditional death-in-service policies.

What is Relevant Life cover?

Simply put, it's the most tax-efficient way for company directors or their employees to pay life insurance premiums. Relevant Life plans are virtually identical to ordinary personal life insurance policies, except there's typically a real-terms saving of between 36% and 53% on the premium, depending on your income tax bracket.

Relevant Life plans were introduced in 2007, after changes to pension legislation allowed UK insurers to develop a death in service policy which didn't count as an employee 'benefit in kind'. And although it's been nearly a decade since the cover was first offered, public awareness still remains shockingly low. As a consequence, thousands of people in the UK still pay significantly more than they need to for their life cover.

How does a Relevant Life plan save money?

In most cases, Relevant Life policies are counted as an allowable business expense by HMRC - which means the employee saves money on Income Tax and National Insurance contributions, whilst the business saves on National Insurance and gets Corporation Tax relief on the insurance premiums. So for a taxpayer in the 40% Income Tax bracket paying life cover premiums from their personal income, the real-terms saving is normally 49%. Over the full term of a typical life cover plan - say twenty years - the savings often add up to tens of thousands of pounds.


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