Relevant Life Insurance
A Tax-Efficient Way to Protect Yourself as a Director
Relevant Life Insurance — Available Through Our Trusted Partner
As a company director, your financial planning needs are different from a standard employee. A Relevant Life Policy is a tax-efficient life insurance solution designed specifically for directors and employees — paid for by the company, with significant tax advantages for both you and your business.
We’ve partnered with a specialist, regulated insurance provider so you can access this valuable protection simply and confidently.
What is Relevant Life Insurance?
A Relevant Life Policy (RLP) is an employer-funded life insurance policy that pays out a tax-free lump sum to an employee’s or director’s family or dependants if they die or are diagnosed with a terminal illness during the policy term.
Unlike a personal life insurance policy, it is arranged and paid for through your limited company — making it far more cost-effective.
Key Benefits for Directors
- Company pays the premiums — treated as an allowable business expense
- Not classed as a P11D benefit — no personal income tax liability on the premiums
- No National Insurance contributions — for employer or employee
- Pays out free of inheritance tax — the policy is written into a discretionary trust
- More cost-effective than personal cover — directors can save up to 50% compared to a personal policy
- Supports employee retention — can also be offered to key staff members
Inheritance Tax Planning
Because the policy must be written into a discretionary trust, the payout falls outside of the director’s estate. This means:
- The lump sum is not subject to inheritance tax on death
- It passes directly to beneficiaries without going through probate
- It pays out quickly, without waiting for the estate to be settled
This ensures the life insurance payout is protected from IHT — which is a meaningful benefit.
Is It Right for You?
A Relevant Life Policy is typically suitable if you are:
- A limited company director paying yourself via salary and/or dividends
- A small business owner looking for tax-efficient personal protection
- An employer wanting to offer life cover as a staff benefit without the cost of a group scheme
- Someone who has maximised pension contributions and is looking for alternative tax-efficient planning
Eligibility and available benefits will depend on your individual circumstances. This is not financial advice.
How It Works
Express your interest
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Get referred to our partner
We'll connect you with our regulated insurance specialist
Receive tailored guidance
Their team will assess your situation and find the right policy for you
Understanding Relevant Life Insurance for Directors
Important Information — Please Read
A Relevant Life Policy is a death-in-service benefit arranged by a limited company for a director or employee. It is designed to provide a tax-free lump sum to the individual’s loved ones or dependants if they pass away or are diagnosed with a terminal illness within the policy term. The policy is held in trust, meaning the payout falls outside of the individual’s estate for inheritance tax purposes.
With a standard personal life insurance policy, premiums are paid from your post-tax personal income. With a Relevant Life Policy, the premiums are paid by the company, treated as an allowable business expense, and do not attract income tax, National Insurance, or P11D benefit-in-kind charges. This makes it significantly more tax-efficient for directors and their companies.
A Relevant Life Policy must be written into a discretionary trust. This ensures the payout is made quickly to the intended beneficiaries and falls outside of the director’s estate, avoiding inheritance tax. The trust is typically arranged at the same time as the policy is set up.
The Relevant Life Insurance products referenced on this website are provided by a third-party, FCA-authorised insurance specialist. BHC Technology Limited does not provide, underwrite, or administer any insurance products. We act solely as an introducer, connecting you with a regulated provider.
We are not an insurance company or broker. Our role is to refer clients who are interested in Relevant Life Insurance to a trusted, regulated partner. We do not provide insurance or financial advice. Any recommendations or guidance you receive will come directly from the insurance provider.
There is no charge to you for being referred. This does not affect the premium or terms of any policy you take out.
- A Relevant Life Policy must be arranged through a limited company — it is not available to sole traders
- The policy must be used for genuine death-in-service purposes and comply with HMRC guidelines
- Premiums, eligibility, and cover levels will depend on age, health, and personal circumstances
- We strongly recommend seeking independent financial or tax advice to ensure this product is appropriate for your situation
- Always read the full policy terms, conditions, and exclusions before purchasing
Regulatory Information: BHC Technology Limited is an introducer and is not regulated by the Financial Conduct Authority (FCA) for insurance mediation. The Relevant Life Insurance products referenced on this site are offered by a fully regulated, FCA-authorised provider. Full regulatory details will be provided when you are referred to our partner.
