Relevant Life Cover
What is Relevant Life Cover?
Relevant life cover is a form of business life insurance that provides an individual death in service benefit for a single employee or director. The policy is taken out and paid for by the employer, written into a discretionary trust, and pays a tax-free lump sum to the employee’s family or financial dependants in the event of their death or diagnosis of a terminal illness.
It works much like personal life insurance, but the cost sits with the business rather than the individual. This makes it a particularly attractive employee benefit for smaller companies that don’t have the numbers to justify a group life scheme.
Testimonials
Our happy clients
As a returning customer, I would like to express my sincere thanks to the team for their outstanding support during the completion of my property purchase. In particular, Catherine and Darren have been incredibly helpful throughout the process. Their communication, professionalism, and customer service have been absolutely excellent, making the entire experience smooth and reassuring. Many thanks again for all your hard work.
My fiancée and I were recommended to LDN Finance when we started our mortgage journey, and the service we have received, and continue to receive, has been outstanding throughout. Phil Levesley initially looked after us and made what can be a very daunting process feel straightforward and easy to understand. He took the time to explain everything clearly, never rushed us, and was always happy to answer any questions we had. Nothing ever felt like too much trouble. As part of the process, we also wanted to explore a number of protection policies, and Phil introduced us to his colleague,
Owen was absolutely amazing and supported me every step of the way throughout the mortgage process. He was always clear, patient, and incredibly reassuring, making what could have been a stressful experience feel smooth and manageable. Bharathy was also really helpful, promptly getting in touch and making sure all the relevant information was handled efficiently. I couldn’t be happier with the service and would highly recommend them both. Five stars without hesitation.
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Contact our professional and experienced protection advisers today to find the perfect policy to safeguard your financial future.
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Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it. LDN Finance is authorised and regulated by the Financial Conduct Authority. As with all insurance policies, terms, conditions and eligibility criteria apply, and tax treatment depends on individual circumstances and may change in the future.
Frequently Asked Questions
Relevant life insurance is a business life insurance policy that provides a death in service benefit for an individual employee or director. The employer pays the premiums, the policy is written in trust, and a tax-free lump sum is paid to the family on death or terminal illness.
Premiums are usually treated by HMRC as an allowable business expense, and corporation tax relief may be available where the policy meets the relevant conditions. This makes it a tax-efficient form of life insurance, though your exact position should be confirmed with an adviser.
Relevant life cover is available to limited company directors, salaried employees and SMEs. It’s particularly suited to businesses without a group life scheme, or those wanting to offer additional cover to selected staff or high earners.
Yes. Relevant life insurance is popular with limited company directors because it provides tax-efficient life cover funded by the business rather than personal income, with no benefit in kind and no impact on the pension allowance.
The employer takes out and funds the policy on the life of a director or employee, writing it into a discretionary trust. If the insured person dies or is diagnosed with a terminal illness, a tax-free lump sum is paid to their family or dependants.
No. A relevant life plan does not count towards the employee’s pension lifetime allowance, making it an attractive alternative for those who already have a sizeable pension pot.
Yes. With relevant life cover, the limited company pays the premiums on behalf of the director. These are usually treated as an allowable business expense, making it a tax-efficient way to provide life insurance through the business.
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