Relevant Life Plan Calculator

Relevant Life Plan Calculator

See exactly how much a business owner or director could save each month by structuring life cover as a Relevant Life Plan instead of an ordinary personal policy.

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Ordinary Life Policy

Paid from Gross Personal Income

Gross Earnings Needed£192.31
Employee Income Tax£76.92
Employee National Insurance£15.38
Employer National Insurance£28.85
Total Gross Cost£221.15
Less Corporation Tax Relief-£42.02
Tax Adjusted Total Cost£179.13

Relevant Life Plan

Paid as Allowable Business Expense

Employer Monthly Premium£100.00
Less Corporation Tax Relief-£19.00
Tax Adjusted Total Cost£81.00

Your Monthly Saving

Minimum monthly saving using a Relevant Life Plan: £98.13 (a saving of 54.8%)

This calculator provides an estimate only based on the rates entered and does not constitute tax or financial advice. Actual savings depend on your individual and company circumstances — always confirm with a qualified accountant and one of our advisers.

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What is a Relevant Life Plan?

A Relevant Life Plan is a type of death-in-service life insurance that a limited company can set up for an employee or director. Unlike a personal policy, the premiums are treated as an allowable business expense — meaning they attract Corporation Tax relief and are not subject to Income Tax or National Insurance for the employee.

By comparison, an ordinary personal life policy must be paid out of income that has already been taxed, meaning you need to earn considerably more gross income just to cover the same monthly premium.

This calculator provides an estimate based on the rates you enter. Always speak with a qualified accountant and one of our advisers to confirm the exact savings for your business.

Want to set up a Relevant Life Plan for your business?

Speak with our advisers to structure tax-efficient life cover for you and your team.

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This calculator provides an estimate only.

Tax rates and reliefs can change. Always verify current rates and seek professional advice for your specific situation.

Important Information

Your home may be repossessed if you do not keep up repayments on your mortgage.

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