Relevant Life Insurance
Explore individual life cover paid for by an employer. Relevant Life Insurance can provide protection for an eligible employee’s loved ones, including an employed company director.
Opens WhatsApp with IM-Insured on +44 7367 195658. Start a no-obligation conversation about your cover.
What is Relevant Life Insurance?
Relevant Life Insurance is an employer-funded life policy covering an individual employee. It is generally arranged through a trust for the employee’s family or other beneficiaries. It is not intended to pay the business’s loans or compensate it for losing a key person.
Who is it for?
Employers looking to provide individual life cover for eligible employees, including salaried directors. Eligibility depends on employment status and insurer rules; business ownership alone does not establish eligibility.
A business-funded policy for one person
Relevant Life is individual employee protection, not a workplace scheme for the whole team and not cover that pays the business.
Employer
The business arranges and normally funds the policy, subject to eligibility and insurer terms.
Employee or director
One eligible person is insured under the individual policy.
Loved ones
On a valid claim, the benefit is intended for the people named through the relevant trust arrangements.
Tax and trust treatment depends on circumstances. Review both with appropriately qualified advisers before setting up cover.
What to consider
The policy can pay a lump sum if the employee dies during the term. Some policies also include terminal illness cover with specific conditions. Check the cover offered rather than assuming critical illness benefits are included.
Individual employee cover
This is arranged around one employee, whereas a Group Life scheme covers eligible members under a workplace arrangement.
Employer-funded protection
The business pays the premiums. The policy and trust must be arranged correctly for the intended beneficiaries and potential tax treatment.
Why consider this cover?
Relevant Life can be worth discussing when an employer wants to provide life cover outside a group scheme. Consider the amount required, existing benefits and what happens if employment changes.
Before you decide
- Confirm that the person and employer meet eligibility requirements.
- Understand the trust and beneficiary arrangements.
- Ask what continuation options exist if the employee leaves.
- Potential tax advantages are conditional; confirm the position with your accountant and remember tax rules can change.
How IM-Insured can help
IM-Insured can explain the insurance options and application process. Discuss employment status, desired cover and any existing death-in-service benefits so the arrangements can be considered together.
Continue on WhatsApp: +44 7367 195658. Your enquiry does not commit you to a policy.
