Relevant Life Plans
Tax-Efficient Life Cover for Directors or Employees
A Relevant Life Plan is a smart, tax-efficient life insurance policy funded by an employer. It provides death-in-service benefits to a directors or employee’s family - helping protect their financial future. Unlike typical group schemes, Relevant Life Plans are non-registered, meaning they sit outside pension legislation. This makes them especially attractive for small businesses, directors, and high earners.
First introduced under the Pension Simplification Legislation on 6 April 2006 (commonly known as ‘A-Day’), these plans offer employers a streamlined alternative to group life cover.
Who Is It For?
Relevant Life Cover may be ideal when:
- You run a small business without enough employees to justify a group life insurance scheme.
- You want to provide higher-value death-in-service benefits than the standard company policy allows.
- Employees have substantial pension savings and want to keep life benefits outside their pension lifetime allowance.
Why It Matters
This cover offers peace of mind to both employers and employees:
“In the event of death - or terminal illness - during employment, the plan provides a lump-sum payment to the employee’s family, helping ease financial burden during an incredibly difficult time.”
From an employer’s perspective, it’s also:
- Corporation tax-deductible
- Free from benefit-in-kind tax for the employee
- Flexible and portable should the employee change jobs
At Dunedin Financial
We work closely with businesses across the UK to:
- Assess suitability for Relevant Life Cover
- Design individual plans tailored to employees’ needs
- Ensure all tax and legal structuring is compliant and optimised
Whether you're a director seeking efficient cover, or an employer wanting to invest in your team’s security - we're here to help.
