Are you a company director with life assurance to provide for your loved ones?

Taking out a Relevant Life Policy could be a tax-efficient way of providing life cover where the number of employees is too low for a group death in service scheme.

Most people pay their life insurance premiums from their post-tax income if you have a limited company – Don’t!

You can use a Relevant Life Policy to make substantial tax savings instead!

It works like this:

  • Your company pays the premiums for you
  • Premiums are an allowable business expense to offset against corporation tax
  • Premiums are not treated as a benefit in kind – so no tax for you personally
  • You can insure up to 25x your total remuneration including dividends 

In Brief:

  • Reduce your costs using this tax-efficient method for arranging your life insurance
  • Substantial tax savings, especially for higher ratepayers
  • Relevant Life Policies are written in trust for your chosen beneficiaries. This allows quick payment of benefits normally free from inheritance tax.
  • Benefits are also payable free from Income Tax.  

To discuss how Relevant Life Cover could work for you and your business, contact FMB on 01539 725855 or visit 

Contractors should seek professional advice from a financial adviser before taking key decisions about Life Cover and other forms of protection.

Blog by Dave Edwards DipPFS Financial Planner at FMB, our preferred partner for financial services.

Financial Management Bureau Ltd is authorised and regulated by the Financial Conduct Authority. Registered address: Shenstone House, Helsington, Kendal, LA8 8AA.

Please note tax reliefs will vary and are dependent upon individual circumstances