Relevant life insurance
Cover individual employees against their death or a critical illness diagnosis and provide financial support to their dependents.
Get a relevant life insurance quote
Our independent advisors are on-hand to answer any questions about relevant life insurance and help you when you’re ready to compare the policies on the market. We work with all major UK relevant life providers, and we’ll aim to find you the most suitable and competitively priced policy for you that covers you for what you need.
What is relevant life insurance?
Relevant life insurance is similar to a death in service policy, but rather than covering a group of employees, the policy insures a single individual in the workforce. The cover will pay out a cash lump sum to the employee or their dependents if they’re diagnosed with a critical illness and have less than 12 months to live or if they pass away. The individual must still be employed for the claim to be valid.
Although it is the employee who receives the cover and benefit, it’s the business that pays the policy premium and must organise the coverage. The policy can be tailored around the individual requirements of the employee or director, and their medical history may be considered when determining what’s covered and excluded.
Get a quote
Should your business consider relevant life insurance?
If you’re a smaller business, relevant life insurance offers an alternative to a group based scheme, such as death in service.
Relevant life may be more tax efficient compared to policies that offer similar coverage.
This policy type may allow you to provide cover that’s tailored to individuals in your company, rather than a wide group.
You may help to provide peace of mind to your employees and their dependants in case the worst happens.
The policy premiums may be deductible from pre tax profits.
Offering this as a benefit to your employees may help to attract talented staff.
Relevant life insurance is often a more cost-effective option compared to an individual purchasing their own policy under the same terms.
It may be easier to retain members of the workforce due to you offering this cover to them and their family.
While covered, your employees may not need to purchase a similar individual policy, meaning they’ll have more financial freedom.
How does relevant life insurance work?
Relevant life insurance involves two parties; the business and the individual being insured. Unlike group schemes where many employees are insured, the covered employee may have input on how the policy is structured.
Get a quote
Relevant life insurance for businesses
You are responsible for setting up and paying for the policy.
It may be beneficial to liaise with the employee to understand their wants and needs.
The cost may be deductible from company profits.
You do not have to pay national insurance contributions on the premiums.
You can choose which employees are covered under relevant life.
You’ll have to purchase a separate policy for each individual who needs cover.
Relevant life insurance for employees
You are not responsible for setting up the policy or paying the premiums.
You may have input over how the policy is structured, as you are the only insured individual.
The provider may request information about your medical history.
If a claim is made, the payout will be deposited into a trust before being distributed to your dependents.
Relevant life isn’t considered a benefit in kind, so you won’t be taxed for being covered.
Your lifetime pension allowance won’t be affected by a payout.
Are there any policy exclusions?
Relevant life insurance covers an employee's life, but you may find that some providers add exclusions to the policy. What these are depend on factors unique to the person being insured, with some examples being as follows:
How do relevant life claims work?
Relevant life policies are often written into trusts, which may be a requirement from some providers. This means that the potential payout can be paid out to the family of the employee, as well as the employee themself. If a claim is made, it’s important to note that the payout does not contribute towards the lifetime pension allowance of the individual.
How much does relevant life insurance cost?
Please contact one of our advisors to understand how much relevant life insurance may cost. The premium price depends on factors unique to the individual and decisions you make when building your policy. Some examples of what may affect the cost are as follows:
Compare relevant life policies
We offer a free relevant life comparison service that you can use to understand the policies available on the UK market. You’re under no obligation to purchase, and we’ll aim to answer any of your questions and find you the best policy for your needs. Provide some contact information, and one of our advisors will be in touch.
What our advisors have to say about relevant life insurance
“Relevant is often one of the most tax efficient ways for businesses to offer cover of this type. It presents a viable alternative for smaller businesses who cannot purchase group schemes, and high earners who are concerned about their lifetime pension allowance”
Group critical illness FAQs
Are relevant life insurance and death in service the same thing?
Who is relevant life best for?
Where can I purchase relevant life insurance?
How much will relevant life insurance cost?
Why choose Premier Choice Group?
Personal market analysis
Our team will personally review your options
Free comparison service
Our no obligation service is entirely free
Independent advice
Our advice is always unbiased and impartial
Fair analysis
We aim to offer a fair analysis of policies available on the market
Single UK-based contact
A UK based company providing a nationwide service
Qualified advisors
Authorised & regulated by the Financial Conduct Authority
Helping you to protect your business
Key Person
Protect your business from the loss of an employee who is essential to your company’s ability to operate or generate revenue.
Learn moreShareholder Protection
Purchase a plan that protects all shareholders in a private limited company or partnership if a shareholder passes away or becomes critically ill.
Learn moreCritical Illness
Receive a cash lump sum if you’re diagnosed with a critical illness to help with your own and your dependent's financial commitments.
Learn moreExecutive Income
If an employee is unable to work due to injury or illness, executive income protection can provide financial support to cover some of the associated costs to the employee and business.
Learn moreIncome Protection
If you’re unable to work through injury or illness, receive financial support for your ongoing payments, such as loans, mortgages and day-to-day expenses.
Learn more