RELEVANT LIFE COVER:
What is Relevant Life Cover?
Relevant Life Cover is a tax-efficient life insurance policy designed for business owners, directors, and employees. It provides a lump sum payment to the insured person’s family if they pass away while employed by the company. Unlike personal life insurance, the premiums are paid by the business, offering significant tax savings.
Why Choose Relevant Life Cover?
Many company directors and employees want life cover, but standard policies are paid from post-tax income. Relevant Life Cover provides an alternative that:
Is paid for by the business – Instead of using personal income, premiums are a business expense.
Offers tax efficiency – Policies are usually free from income tax, corporation tax, and National Insurance contributions.
Provides peace of mind – Employees and directors can ensure their loved ones are financially secure.
Who is Eligible?
Relevant Life Cover is ideal for:
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Company directors and business owners who want tax-efficient life cover.
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Small businesses that want to offer life insurance without setting up a full group scheme.
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Employees who want personal life cover but don’t want to pay from post-tax income.
How Does It Work?
The business takes out a Relevant Life Policy on behalf of an employee or director.
Premiums are paid by the company and are usually treated as a tax-deductible business expense.
If the insured person passes away, the policy pays a tax-free lump sum to their nominated beneficiaries.
Key Benefits of Relevant Life Cover
Significant Tax Savings – Premiums are usually an allowable business expense, reducing corporation tax.
No Impact on Personal Allowances – Unlike personal life insurance, it doesn’t count towards annual pension or lifetime allowances.
Higher Payout Potential – Cover can be a multiple of salary and dividends, providing greater protection than some personal policies.
Flexibility – The policy can be transferred if the insured person moves to a new employer.
Peace of Mind – Ensures financial security for family members in case of death or terminal illness.
How Much Cover Can You Get?
The sum assured is usually based on a multiple of the employee’s earnings (including salary and dividends):
Up to 25 times annual earnings for those under 40.
Up to 15-20 times earnings for older employees.
Who Benefits?
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The Employee’s Family – Receives a lump sum if the insured person passes away.
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The Business – Gains tax relief on premiums and offers an attractive benefit to key employees.
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Company Directors – Protect their family while reducing taxable income.
HOW CAN WE HELP?
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Our customisable insurance packages are designed with your specific needs in mind, ensuring that you are correctly covered. Plus, we're here to walk you through the entire process, ensuring that all your requirements are met and you have peace of mind knowing you are protected.
WHY CHOOSE COVERLIFE INSURANCE?
Our team of professionals have years of experience in the industry and can guide you every step of the way. We believe in providing quality advice and ensuring our clients have the right cover at the right price. So, whether you’re just starting out or looking to expand your business, trust CoverLife to provide you with the best possible insurance solutions.
KEY FEATURES:
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Why use CoverTrade Insurance?Regardless if you’re a tradesmen, shop owner, landlord, looking to cover your fleet of vehicles or have any other business requirements, Cover Trade are able to help with friendly and professional advice to get the cover in place you need.
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Why use CoverLife Insurance?CoverLife Insurance is here to safeguard your future and the people who depend on you. Whether it’s personal life cover, critical illness protection, or keyman insurance for your business, we make the process simple and stress-free.
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Our experienceWith our wealth of experience, knowledge of the market and network of insurers we’re able to find you the most comprehensive cover at the right prices without trying to upsell or oversell on an insurance you might not need.
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What are the benefits of talking to our team?Flexible payment options Dedicated account managers Out-of-hours contact should you need to make a claim or just have a question A quick and easy, pain-free service An excellent customer experience
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How quickly can you arrange my cover?We can arrange cover straight away giving you peace of mind.
Income Protection
Income Protection is a policy designed to pay you a regular monthly income if you’re unable to work due to illness or injury. It ensures your essential bills and living costs are covered while you recover.
Unlike statutory sick pay or short-term support, Income Protection can provide cover until you return to work, retire, or reach the end of your policy term – whichever comes first.
