A relevant life policy is a tax-efficient life insurance policy taken out by an employer on behalf of an employee, offering death-in-service benefits outside of a group scheme.
How It Works
a Relevant Life Policy is an important concept in the UK financial services landscape. Understanding how it works is essential for brokers and advisers who want to serve their clients effectively and identify opportunities within their practice.
For consumers, this typically involves engaging with a qualified financial adviser who can assess their specific situation and recommend appropriate products or solutions. The adviser's role is to ensure the consumer understands their options, the costs involved, and any risks associated with their decision.
Why It Matters for Advisers
For financial advisers and mortgage brokers, understanding this area creates opportunities to serve clients more comprehensively. Many consumers have needs across multiple product areas, and advisers who can address a broader range of requirements build stronger, longer-lasting client relationships.
If you're looking to expand your client base in this area, consider investing in specialist leads that connect you with consumers actively seeking this type of advice. For more information on lead types and pricing, visit our pricing page.
In practice: A limited company director earns £120,000/year and wants £500,000 of life cover to protect his family. Instead of buying a personal policy (paid from taxed income), he sets up a relevant life policy through the company. The company pays £45/month in premiums — fully tax-deductible as a business expense. The cover is written in trust, so the pay-out goes directly to the family on death, bypassing inheritance tax. Total tax saving vs personal cover is roughly 49% (corporation tax + dividend tax + NI).
Why it matters for brokers: Relevant life policies are a strong cross-sell with limited company director clients — typically business owners, contractors, and professional service providers. Premiums are comparable to standard life cover so commissions are similar, but the advice opportunity (coordinating with accountants, setting up trusts) adds value. Relevant life policy leads often come from recently-formed limited companies needing protection advice.