A Relevant Life Plan is a term assurance plan available to employers to provide an individual death in service benefit for an employee.

It can help smaller businesses attract and retain high-calibre staff by offering them attractive benefits packages that are also tax efficient. It can also be a tax-efficient way for shareholder directors to take out life insurance.

Tax benefits
There can be tax benefits for both the employer and employee.


Employer benefits:

  • corporation tax relief (so long as the premiums are wholly and exclusively for the purposes of the business); and
  • no National Insurance contributions to pay on the policy payments paid to fund the Relevant Life policy.

Employee benefits:

  • no National Insurance contributions to pay on the policy payments paid to fund the Relevant Life policy;
  • the policy payments won’t be taxed as a benefit in kind; and
  • policy payments and benefits don’t count towards annual or lifetime pension allowances.