Group Life Insurance 

Group Life Insurance (often called "Death in Service") is a valuable company benefit. If an employee passes away while employed, it pays out a tax-free lump sum to their family—typically between 2 and 4 times their annual salary.

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But what if you don’t have enough staff to qualify for a group scheme?

 

A Relevant Life Plan works in the exact same way but is designed for individual employees or company directors. It allows small businesses and startups to offer the same high-quality protection on a personalised, one-off basis.

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Why it is incredibly tax-efficient:

Funding life insurance through a limited company is one of the most tax-friendly decisions a business owner can make. By paying premiums through the business instead of from personal, post-tax income, you unlock major savings:

• For the Business: Premiums are 100% tax-deductible as an allowable business expense (lowering your Corporation Tax), and they attract 0% Employer National Insurance.

• For the Employee: HMRC does not view this as a taxable perk. There is 0% Income Tax and 0% National Insurance to pay on the premiums, effectively cutting the cost of cover by up to 50% compared to a personal policy.

• For the Family: Because the policy is written into a trust from day one, the payout bypasses the standard 40% Inheritance Tax (IHT) and avoids lengthy probate delays, getting funds to the family almost immediately.

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