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What is relevant life insurance?

Relevant life insurance is a way for an employer to provide a lump sum death benefit for an employee or Director, with any pay out made to their beneficiaries.

Relevant life insurance policies can be used where:

  • A small business that doesn’t have enough employees to qualify for a group policy
  • High-earning employees who might exceed their personal pension lifetime allowance. Registered group life schemes are included in pension legislation, meaning any paid claim is included in the employee’s pension fund. Claims paid under a relevant life insurance plan do not count towards an individuals’ lifetime allowance
  • Members of group life schemes who want to top up their benefits

FREQUENTLY ASKED QUESTIONS

Why do I need relevant life insurance?

There are numerous benefits to taking out a relevant life insurance policy for both the employer and employee:

  • In terms of the employer, there is corporation tax relief and no National Insurance Contributions to pay on the monthly premiums
  • With regards to the employee, there are also no National Insurance Contributions to pay on the premiums, and any lump sum does not count towards annual or lifetime pension allowances, providing their family with a lump sum in the case of a pay out
How does relevant life insurance work?

Relevant life insurance provides a lump sum pay out to a covered employees’ family in the event that they die or are diagnosed with a terminal illness during the term of the policy.

Get in touch today and we will search the UK’s leading insurers to find the right policy for you at the right price.

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That’s Life is a registered Trading Name of Candid Insurance Services Ltd. Candid Insurance Services Ltd is registered in England and Wales, company number 07279489. Registered Office: 920 Hempton Court, Aztec West, West Almondsbury, Bristol, BS32 4SR, United Kingdom. Candid Insurance Services Ltd is Authorised and Regulated by the Financial Conduct Authority and is entered on the Financial Services Register under number 603273. Licensed by the Information Commissioners Office Registration Number Z3488836. VAT: 160484711.