Relevant Life Cover
A form of death-in-service benefit that is set up and paid for by a company, which pays out to a staff or director's beneficiaries on death or a terminal illness diagnosis.
What is Relevant Life Cover?
Relevant life cover is a simple life insurance policy specifically designed for directors of limited companies or a single employee of a company. This type of life insurance policy ensures the life of another person or persons owned by the business is written in trust for the benefit of the director’s or employee’s family.


What Are Some Regulations involved with Relevant Life Cover?
When thinking about taking out Relevant Life Cover, there are things to know and consider:
- You can offset this premium via corporation tax
- The plan must be set up with a trust, usually discretionary, so the lump sum does not end up within the business (as this could affect capital gains tax or IHT issues)
- The plan is portable and can be changed to a personal plan
- You can only be covered up until the age of 75
- The maximum you can obtain is between 25x – 30x of your salary and dividends
- You cannot have a joint cover
- There are only 2 insurers who offer a decreasing cover; Royal London and Zurich
How Much Does Relevant Life Cover Cost?
Several factors can affect the cost of Relevant Life Cover, which is why premiums are subject to underwriting and may change based on answers to health and lifestyle questions. We’d know ahead of incepting cover if costs were to change.
Get in touch for a customised quotation fit for your budget and requirements

Why choose Jensten Insurance Brokers?
Our Employee Benefits industry specialists, based in the UK, are here to assist you if you are still unsure about this type of insurance. We can provide tailored recommendations to your company.
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Relevant Life Cover
To help you learn more about Relevant Life Cover here is our frequently asked questions. We hope they are of use, but if you’d like some independent advice from our employee benefits consultants, please call us and a member of our experienced team will be happy to help.
Relevant Life Insurance is a common employee benefit. Ask your human resources department to see if you’re entitled to this type of benefit. They’ll be able to tell you what you’re entitled to as an employee, the level of cover on offer – and what forms you need to complete to receive it.
It is possible for the business to put the premiums through as a business expense (i.e., The premiums are fully tax-deductible), and the premiums do not represent a P11D benefit for the director/employee, nor is any benefit paid out by the plan taxable. The proceeds will be paid into the trust, which means the sum assured would not be subject to inheritance tax implications.
Relevant life insurance was set up for business directors who lost employment benefits. This cover is to give a director or employee their own death-in-service benefit.
The cover is completely portable and can be transferred to a personal plan.
You can only be covered to the age of 75, as the insurer expects you to retire at this point. We also hope you can too!
The policy will be set up with a free trust, where the money will be paid to an individual, tax-free.
Unfortunately not, as this policy is structured on an individual benefit, as this is treated as your death in service benefit.
You can look at both options. However, it is better to keep the policy level due to inflation purposes.
Yes, you have the option to do this.
You will be covered in the event of passing away or becoming terminally ill. There is a provider that offers illness coverage, but this needs to be discussed.
Yes, as the policy must be set up with a trust. This means that the cover will sit outside of your business or personal estate.