Tax Efficient Protection

Relevant life policies

Get the taxman to help pay for cover


A relevant life policy is a single life, standalone death-in-service, providing benefits on an individual basis.


Key benefits:

Unique individual stand-alone cover
Tax advantages for high earners
Premiums not taxed as benefit in kind
Allowable as expense for employer

There are various advantages to this. For a start, it offers high-earning employees who have substantial pension funds a number of tax advantages. That’s because the lump sum benefits do not form part of the employee’s annual or lifetime pension allowance.

And, although the company pays the premiums, they are not normally taxed as a benefit in kind which can offer huge savings, especially for a higher rate taxpayer.

So, while it is mainly aimed at high earners, it can be suitable for any employee. What’s more, the payments may aiso be treated as an allowabie expense for the employer in calculating their tax liability.

Which means it is also particularly suitable for small businesses that do not have enough eligible employees to warrant a group life scheme.

These plans typically have no cash in value at any time and cover will cease at the end of the term.  If premiums stop, then cover will lapse.

The Financial Services Authority does not regulate tax advice.