Relevant Life Insurance

Relevant Life Insurance

Instant Online Quote & Apply

RATED 5 STARS ON TRUST PILOT

or

Call us:- 020 7112 8844

  • Best Price Guarantee
  • Whole of Market Access
  • FCA Authorised Advice

How it works

Compare Relevant Life Insurance Quotes & Apply Online in 3 Simple Steps.

Submit

Submit the details of the people you want to insure

Compare

Compare Relevant Life Quotes Online

Apply

Fill out the application and get Relevant Life Cover today

What is Relevant Life Insurance?

Relevant Life Insurance is a company owned insurance policy that allows businesses to offer life insurance to specific employees within the organisation.

More and more company owners and directors are catching on to the benefits of Relevant Life Insurance. Historically it’s only been large companies that have been able to offer life insurance as a company perk with group life policies paying 4 or 5 times income.  But with Relevant Life Cover, small and medium companies can now offer the same. In fact many of our clients only have between 1 to 5 employees.

If you are the owner of a small company it’s certainly worth thinking about even if it’s just for yourself. With Relevant Life Insurance you can save up to 50% against a personal life insurance policy. So if you are a business owner looking to take out life insurance, why would you ignore Relevant Life Cover?

Try out our relevant life calculator and work out how much you can save. Alternatively why not just compare relevant life insurance quotes online and start saving money.

Start Saving Money

Who can take out a Relevant Life Policy?

Often, small businesses don’t have enough employees to be able to offer a registered group life scheme. Now They Can!

  • Only UK Ltd companies or LLP’s can take out the cover. Partnerships and sole traders can not.
  • The life assured must be a UK resident and a PAYE employee
  • The policy must be written into a discretionary trust

The life covered must remain an employee of the company to be covered.  Being a shareholder alone does not entitle you to take out relevant life cover and therefore Shareholder Protection Insurance may be more suitable. There are options to move the policy to a new company or to a personal life insurance if needed.

Advantages of Relevant Life Cover

Offering Relevant Life Cover to your employees is great for employee retention..

There are fantastic cost savings of using relevant life cover due to its tax efficiency. But that’s not all. Your employees will love you and will be more likely to stay and work hard.

  • Premiums are paid by the company and are tax deductible. (unlike some group schemes)
  • Any Benefits are usually free from inheritance tax.
  • All policies are set up using a discretionary trust which speeds up benefit payments.
  • Relevant Life Cover can be up to 50% cheaper personal life insurance
Relevant Life Calculator Example

The advantages stretch beyond the bottom line, however, studies have shown that companies who show care towards their employees and provide perks, have a lower-staff turnover and also benefit from higher productivity.

A relevant life insurance policy functions as both: it functions as part of a company’s wellness program and also offers an employees an incentive to stay with the company.

Relevant Life Tax Treatment

Relevant Life Insurance can be offset against corporation tax!

Relevant Life Tax Pic

A relevant life trust must be in place in order for the policy to be set up correctly. This is normally quite easy to do and with most providers we are able to set this up over the phone using an online trust. HMRC will treat the premiums as an allowable expense which means they are not included as a P11D benefit in kind. This means the premiums and benefits usually qualify for relief on.

  • Income tax
  • Capital gains tax
  • Corporation tax.
  • National insurance

Of course rules on taxation can change but for now, you are looking at massive advantages and huge savings against normal life insurance. You can read more details into relevant life HMRC tax treatment here.

Or why not get a quote and start saving money..

Relevant Life & Significant Illness

Historically relevant life cover has always been a life only policy which included terminal illness.

We can now offer the option to include significant illness with Relevant Life Insurance. Aviva’s new ‘Relevant Life Cover with Significant Illness’ is available with the same tax benefits as a normal relevant life policy. It is a great added benefit and alternative for those companies that want to go over and above for their employees.

Along with adding significant illness you can still add:

Key man insurance experts

Offering relevant life cover with significant illness to your employees will really show that you care.  In the event of a claim this will give them the financial support they need to help them focus on recovery. For a detailed review of Aviva’s Relevant Life with Significant Illness please check out our blog here. This policy has been designed to meet the requirements defined in section 393(B)(4) of the Income Tax (Earnings and Pensions) Act 2003.

Our Customers Love Us!

Our Customers Love Us!

  • Simple and Low Cost

    Everything was made very easy to understand. The quotes were the cheapest we found too. Very happy!

    Rating
  • Excellent Service

    Everything was made very easy. It was great Jody.

    Rating
  • The only place we would go for key man insurance!

    Great prices and good advice, what more could you want.

    Rating
  • Recommended!

    A very good service thanks...

    Rating
  • Excellent service with easy to understand explanations

    Jody Pearmain of Keyman was very helpful in explaining options and I thoroughly recommend his company

    Rating
  • Good for key man insurance

    Great service and easy to understand. Would use again.

    Rating
  • Fantastic!

    Over and above what we expected. Thanks!

    Rating
  • Would recommend!

    Did everything we wanted very well. Decent price and made easy..

    Rating
  • We received a wonderful service from…

    We received a wonderful service from mykeyman and will be using them again. The service and product knowledge from team is excellent. Everything was made easy to understand. The price was the best we found too.

    Rating
  • The services received was great

    The services received was great. Many thanks to these professionals at mymainsurance. I will definitely use them again.

    Rating
  • First Class Service

    The standard of service from MyKeyMan was first class. They kept me up to date with progress on my Relevant Life Policy, followed up promptly following delays caused by my medical practice being slow in compiling reports, and responded instantly and clearly to any questions I had.

    Rating

Meet Our Team

Our dedicated team are experts in Relevant Life Cover and can offer you FCA qualified advice and 1st class support throughout the process.

meet our team

Jody Pearmain
Jody Pearmain

Managing Director & Founder (My Key Finance Ltd)

Lori Norton
Lori Norton

Administration Manager at MyKeyManInsurance.com (My Key Finance Ltd)

Tyler Pearmain
Tyler Pearmain

Senior Keyman Insurance Adviser at MyKeyManInsurance.com (My Key Finance Ltd)

Keri Gardiner
Keri Gardiner

Customer Service & Website Admin at MyKeyManInsurance.com (My Key Finance Ltd)

Relevant Life Cover FAQ

Key Person FAQ

No, not all of them. It all depends on where you live. In some areas of the country, a nurse can visit the applicant at their workplace or their home, whichever is most convenient. In other areas of the country, visits at home or the workplace are not possible, and it’ll be necessary to visit a surgery.

If you’d like to get more information about taking out this type of policy for one or more of your company’s employees, then you can use our ‘Get a Quote’ form or give us a call on 020 7112 8844.

There are several additions policies that can work in conjunction with this type of plan. One such example is Increasing Cover. This will automatically raise the coverage in line with the RPI (Retail Price Index) or a predetermined, set percentage. There is also Life Change Benefit, which makes it possible to adjust the policy should the employee’s personal circumstances change. As well, there’s continuation benefit, which allows the policy to be transferred to another company or to become a privately held policy.

What is the advantage of Increasing Cover?
Essentially, this protects the applicant against rising costs, which could devalue their payout. This type of coverage automatically raises the level of coverage in line with the retail price index, or by another set amount. So, for example. Let’s say a policy is taken out by someone in their early thirties. If a claim is made some thirty years in the future, it’s possible that the original value is worth much less than what it was when the policy was first taken out, because prices have gone up. If Increasing Cover is added to the policy, the amount of coverage will continue to rise, so it’ll still have the same value, no matter when it’s paid out.
What’s is Life Change Benefit?
This accounts for a change in an employee's personal situation. For example, if a person has since had two extra children since the policy was first taken out, then this would allow for the policy to be changed, to better reflect their situation. They would have greater coverage, because the costs of their living situation have risen considerably, and they’d need to leave more money for the family.
What is the advantage of continuation benefit?
It’s unlikely that an employee is going to work for the same company forever, especially if they’re relatively young. With this, the employee is able to take their policy with them should they move on and work for another company.

In general, policies are limited to twenty times the value of a person’s salary. If a person is earning £40,000, then that’ll mean their coverage will be for £800,000. However, this is not a hard and fast rule. For example, if you’re earning, say, £200,000 per year, then it’s unlikely that the policy would be for £4,000,000, because most people don’t need to be covered for more than £1,000,000. Financial evidence is often requested for applications over £1.000,000.

It all begins with the application process. At this stage, an application is put forth on behalf of the employee who will be receiving the coverage. As part of the application process, the applicant will be assessed on things such as their overall health, lifestyle, age, and the amount of coverage requested. Once the cost of the premium has been assessed, the process can move onto the next stage. It’s important to keep in mind that although much of the legwork -- such as filling out the paperwork and so on -- is conducted by the employee, it’ll be the company that pays the premium.

No. Only employees of a UK Ltd company or UK LLP are eligible for this type of coverage. Freelance workers, the self-employed, and sole traders will need to look for a different type of life coverage policy.

The limit is normally 20x salary. However normally anything under £1.000,000 is fine for anyone.

Depending on where you are in the country a nurse can come out to your work place or home. It may be necessary to visit the nearest surgery.

This is sometimes necessary, but not always. There are various factors that determine whether a medical exam is necessary, or not. It’ll depend on things such as the age and health of the applicant, as well as the value of the coverage they’ll be covered for. If the policy is to be for more than £500,000, then a medical is nearly always required. If the applicant is over the age of fifty or has (or had) health problems, then it’s also likely that a medical will be requested before a policy is awarded.

Is there a limit on how much Relevant Life Insurance I can take?

The limit is normally 20x salary. However normally anything under £1.000,000 is fine for anyone.

Can anyone take out a Relevant Life Policy?

No. Only employees of a UK Ltd company or UK LLP are eligible for this type of coverage. Freelance workers, the self-employed, and sole traders will need to look for a different type of life coverage policy.

How does the application process work?

It all begins with the application process. At this stage, an application is put forth on behalf of the employee who will be receiving the coverage. As part of the application process, the applicant will be assessed on things such as their overall health, lifestyle, age, and the amount of coverage requested. Once the cost of the premium has been assessed, the process can move onto the next stage. It’s important to keep in mind that although much of the legwork -- such as filling out the paperwork and so on -- is conducted by the employee, it’ll be the company that pays the premium.

Who can take out a Relevant Life Plan?

Only two entities are eligible to take out this type of insurance coverage: UK Limited companies and LLP’s, otherwise known as a Limited Liability Partnership. The person receiving the coverage must be a resident of the UK.

How much cover is it possible to take?

In general, policies are limited to twenty times the value of a person’s salary. If a person is earning £40,000, then that’ll mean their coverage will be for £800,000. However, this is not a hard and fast rule. For example, if you’re earning, say, £200,000 per year, then it’s unlikely that the policy would be for £4,000,000, because most people don’t need to be covered for more than £1,000,000. Financial evidence is often requested for applications over £1.000,000.

Who owns the policy?

The policy is technically owned by the company, not the employee that is covered. However, it in effect belongs to the employee, since any payout would be paid to the beneficiaries of the trust names by the employee.

What options can be added to a Policy?

There are several additions policies that can work in conjunction with this type of plan. One such example is Increasing Cover. This will automatically raise the coverage in line with the RPI (Retail Price Index) or a predetermined, set percentage. There is also Life Change Benefit, which makes it possible to adjust the policy should the employee’s personal circumstances change. As well, there’s continuation benefit, which allows the policy to be transferred to another company or to become a privately held policy.

What is the advantage of Increasing Cover?
Essentially, this protects the applicant against rising costs, which could devalue their payout. This type of coverage automatically raises the level of coverage in line with the retail price index, or by another set amount. So, for example. Let’s say a policy is taken out by someone in their early thirties. If a claim is made some thirty years in the future, it’s possible that the original value is worth much less than what it was when the policy was first taken out, because prices have gone up. If Increasing Cover is added to the policy, the amount of coverage will continue to rise, so it’ll still have the same value, no matter when it’s paid out.
What’s is Life Change Benefit?
This accounts for a change in an employee's personal situation. For example, if a person has since had two extra children since the policy was first taken out, then this would allow for the policy to be changed, to better reflect their situation. They would have greater coverage, because the costs of their living situation have risen considerably, and they’d need to leave more money for the family.
What is the advantage of continuation benefit?
It’s unlikely that an employee is going to work for the same company forever, especially if they’re relatively young. With this, the employee is able to take their policy with them should they move on and work for another company.

Can I transfer Relevant Life Insurance to another company?

Yes. If the employee moves to another employer, it’s possible to essentially take the policy with them. It will then be paid by the new employer. If the employee leaves but doesn’t go to work for another company, the policy can be changed into a personal policy, which is then paid for by the individual. There are certain time scales in which a policy must be transferred once someone has left and these vary but are often 21 days.

How do I get a policy?

If you’d like to get more information about taking out this type of policy for one or more of your company’s employees, then you can use our ‘Get a Quote’ form or give us a call on 020 7112 8844.

  • Best Price Guarantee
  • Whole of Market Access
  • FCA Authorised Advice


Get a Quote

My Key Man Insurance

UK’s Number One Business Protection Specialist.