Benefits of Relevant Life Cover

  • Tax Efficient
    Enjoy tax-deductible premiums and a tax-free payout for your beneficiaries.

  • Flexible
    Customise coverage to fit your specific needs, including the amount of the benefit and the duration of the policy.

  • Portable
    Keep your policy even if you change jobs, as it can often be transferred or converted.

  • Cost Effective
    Benefit from a more affordable alternative to traditional group or individual life insurance plans.

  • Peace of Mind
    Secure your family's financial future with a quick, tax-free payout during a difficult time.

Relevant Life Insurance

Relevant Life Insurance is a smart, tax-efficient way for company directors and employees to arrange life cover through their business. The premiums are usually classed as a business expense, which means they can often be offset against corporation tax. The payout, however, is normally free from income tax, National Insurance and inheritance tax.

Premiums aren’t considered a benefit-in-kind, so there’s no additional tax liability for the employee. When the policy is placed in a discretionary trust, the lump sum goes straight to the chosen beneficiaries, providing financial security exactly where it’s needed without forming part of the estate.

Relevant Life Insurance appealing for directors of small companies, or businesses who want to offer meaningful benefits to key employees without setting up a full group life scheme.

What is Relevant Life Insurance?

Relevant Life Insurance is a type of term life policy taken out by an employer on behalf of an employee or director. It’s designed to pay a lump sum to the insured person’s family or dependants if they die during the term of the policy.

For families, this lump sum can be invaluable. It can be used to cover funeral costs, clear debts such as a mortgage, replace lost income, or simply provide ongoing financial support and stability at a very difficult time.

The level of cover is usually based on a multiple of the employee’s salary or a fixed sum agreed between employer and employee. Policies generally run until retirement age or up to a maximum age limit (commonly 75). If the employee leaves the business, the policy can often be transferred to a new employer or converted into a personal plan.

What a Relevant Life Insurance policy includes

  • Tax Efficiency – Premiums are usually deductible for the employer, and the payout is typically tax-free for beneficiaries.

  • Flexibility – Cover can be tailored to suit individual needs, including the level of benefit and length of cover.

  • Portability – If the insured person changes jobs, the policy can often move with them or be converted to a personal plan.

  • Cost Effective – Compared with setting up a group scheme or arranging individual life cover, Relevant Life can be a more affordable solution.

  • Peace of Mind – Families receive financial support when they need it most, without unnecessary delays or tax complications.

The main benefits of Relevant Life Insurance

For Employers:

  • Tax Efficient: Premiums are normally treated as a business expense, so they can reduce corporation tax.

  • Valuable Benefit: Offering life cover enhances your employee benefits package, helping you attract and retain talent.

  • Cost Effective: Often cheaper than providing a full group life insurance scheme, particularly for smaller companies.

  • Flexible Setup: Cover can be arranged on a case-by-case basis, so you can protect directors and key employees without needing a minimum number of staff.

For Employees:

  • Financial Security: Provides reassurance that loved ones will be looked after financially if the worst happens.

  • Tax-free Payout: Beneficiaries receive the full lump sum without deductions for income tax, National Insurance, or inheritance tax (when written in trust).

  • Tailored Cover: Policies can be designed around your personal needs and circumstances, including the level of cover and how long it runs for.

  • Portability: If you change jobs or leave the company, the cover doesn’t have to end – it can often be transferred or continued personally.

Working with Dragonfly Crowd to secure the best life insurance policies

At Dragonfly Crowd, we know that life insurance isn’t just about numbers and policies – it’s about peace of mind. It’s about knowing your family will be taken care of, and that the decisions you make today will provide security in the future.

We work with the UK’s leading insurers to make sure you have access to the most suitable cover, at the best possible value. Our advisers don’t believe in jargon or pushy sales tactics. Instead, we offer straightforward, personal guidance, helping you understand your options so you can make confident, informed choices.

Whether you’re a company director looking for a tax-efficient way to arrange cover, or a business wanting to provide valuable benefits for employees, we’ll guide you through the process and make sure you and your family are properly protected.

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