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Relevant Life Plan

A tax-efficient way for a business to provide life cover for an individual employee or director, with corporate tax relief and no employer NIC.

Whole-of-market access, including cover from

Aviva Legal & General Vitality Royal London Zurich LV= Guardian Bupa MetLife Aviva Legal & General Vitality Royal London Zurich LV= Guardian Bupa MetLife

A Relevant Life Plan is an extremely tax-efficient life insurance policy that a business can provide for an individual employee, including directors. It's paid for by the business, not the individual, and sits outside normal benefit-in-kind rules.

The tax advantages

  • Premiums usually qualify for corporation tax relief as a business expense
  • No employer National Insurance is due on the premiums
  • No P11D benefit is created, so the employee pays no income tax or National Insurance on it either
  • The payout is typically free of inheritance tax when written in an appropriate trust

Who it's for

Businesses that want to offer death-in-service style life cover to owners, directors and employees alike, particularly smaller companies that don't have access to a group scheme.

Frequently asked questions

Is this the same as death-in-service cover?

It achieves a similar result, but a Relevant Life Plan is an individual policy rather than part of a group scheme, which makes it well suited to smaller businesses that don't have enough employees for group cover.

Can I have one if I'm the only employee of my own company?

Yes, this is one of the most common uses, a director of their own limited company taking out tax-efficient life cover through the business.

Does it affect my pension annual allowance?

No. Because it's a life insurance policy rather than a pension contribution, it doesn't count towards your pension annual allowance.

What happens if I leave the company?

The policy is tied to your employment with that specific business, so cover would typically end, though it's often possible to take out a new policy through a new employer or personally.

Who regulates us

Match Financial Partners Ltd is authorised and regulated by the Financial Conduct Authority (under number 983246 in respect of mortgage, insurance and consumer credit mediation activities only).

You can check this on the Financial Services Register by visiting the FCA's website www.fca.org.uk or by contacting the FCA on 0800 111 6768.