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Business protection

Relevant life
insurance

Give your employees peace of mind with tax-efficient relevant life cover

Protecting businesses if a key employee passes away can be overlooked. But a relevant life policy can help. It pays out a lump sum if your employee is diagnosed with a terminal illness or passes away. It could save you up to 50% tax compared to an ordinary live plan. And it's a tax-efficient benefit for your employees. Your business saves money and they get access to a great employee benefit.

High earners and key employees benefit most from relevant life cover. It doesn't count towards the Lifetime Allowance. This is the limit on your amount that can be drawn from pension schemes. You can also cover individuals so it's ideal if you want to provide variable cover.

At Vitality, the person covered has access to our discounts and partners too. The Vitality Programme rewards them for staying healthy. This could mean less time off sick and more productivity.

What does relevant life insurance offer?

  • Affordable

    Affordable icon

    If you add our Optimiser option, you could get 30% lower premiums. This depends on employee age and their length of term.

  • Tax-efficient

    Tax-efficient icon

    As it’s a tax deductible business expense, you can save up to 50% in tax and make no National Insurance contributions.

  • Employee benefit

    Employee benefit icon

    Relevant life insurance doubles up as an employee benefit. Your key persons are protected and they get access to our rewards and partners.

  • Flexibility

    Flexibility icon

    If employees leave the business, they can still be protected. Without extra underwriting, they can replace it with a personal plan (if under 65).

Calculate your tax savings

Relevant life cover offers significant tax savings for businesses. This can be up to 50% but does vary. The calculator helps you compare the price difference between relevant life and an ordinary life policy. All you need to do is fill in a few simple details. It will show you the savings on employer and employee tax. We only ask for your name and email address so we can send you the results.

You can also use our risk calculator. You add the age and sex of your employees. Then it gives you a percentage chance of at least one of your employees passing away.
Calculate your savings
Tax savings calculator on a desktop screen

Optimise your relevant life cover with these add-ons 

• Optimiser
If you add this option, you could get 30% lower premiums. This depends on employee age and their length of term.

• Vitality Plus
If your monthly premium goes above £45 and you have Optimiser, you can add this for just £4.75 a month per employee. It gives them access to our full range of partners.

• Disability cover
This pays out a lump sum if the person insured is diagnosed with an illness or becomes disabled because of an accident. This is the main content for the headline row component.
Diagram of optimiser and disability cover being added to the plan
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Relevant life insurance FAQs

Relevant life insurance is a cost-effective way for you to protect your employees and your business. If they become terminally ill, they receive a payout. If they pass away, the benefit is paid to their family or financial dependants. It's a tax-efficient alternative to a 'death in service' benefit.
Any employee or director of a limited company, partnership, charity or a sole trader can have relevant life insurance.
Relevant life cover is tax deductible and not classed as a P11D benefit-in-kind by HMRC. Employees covered by it also don't have to pay income tax on the premiums. Both the business and employee don't have to pay National Insurance contributions either.
Relevant life insurance is technically owned and paid for by the business. This means premiums are a tax deductible expense.