If you’re a director of a limited company, contractor, or business owner, you may be paying for life insurance personally… and missing out on huge tax savings.
Relevant Life Insurance lets your company pay for your life cover, with the premiums treated as a tax-deductible business expense. There’s no benefit-in-kind, no P11D issues, and no impact on your personal income tax.
At Mortgage Knight, we help professionals set up Relevant Life policies that protect their families while reducing their tax bills. It’s smart, simple, and surprisingly affordable.
Relevant Life is a type of term life insurance arranged and paid for by a Ltd company for the benefit of an employee or director.
Think of it as death-in-service benefit, but for smaller businesses or contractors who don’t have a group scheme.
Aaron, , an IT contractor, was paying for personal life cover. We switched him to a Relevant Life Plan through his company, saving him over £300/year in tax while keeping the same level of cover.
Rebecca, a digital marketing agency owner, wanted £1 million in cover but didn’t want it affecting her income. We arranged a Relevant Life policy that protected her family and reduced her company’s corporation tax.
If you’re a company director or contractor paying for life insurance personally, you could be missing out on significant tax savings.
Speak to Mortgage Knight today, and we’ll show you how a Relevant Life Plan could give you smarter protection, with your business footing the bill.
A: Not at all. It’s designed for small businesses and directors who don’t have access to group life cover, including one-person companies.
A: No. There’s no benefit-in-kind — the premiums aren’t classed as personal income, so they won’t affect your P11D or tax return.
A: Yes — the payout goes into a trust and then on to your chosen beneficiaries, free of income tax or inheritance tax.
A: No — HMRC doesn’t allow critical illness to be included in a Relevant Life Plan. But we can set up separate critical illness cover if needed.
A: The policy can usually be transferred or rewritten as a personal plan, or cancelled. We’ll help you review it if your circumstances change.
