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.

There may be a fee for arranging a mortgage and the precise amount will depend on your circumstances i.e credit history, employment record.
This will typically be £395 for purchases, remortgages £199 and we will not charge for a Product Transfer.
We will provide you written confirmation of your fee prior to the commencement of any chargeable activity.

There may be a fee for arranging a mortgage and the precise amount will depend on your circumstances i.e credit history, employment record.
This will typically be £395 for purchases, remortgages £199 and we will not charge for a Product Transfer.
We will provide you written confirmation of your fee prior to the commencement of any chargeable activity.

Your home is at risk if you do not keep up repayments on a mortgage or other loan secured against it.

Step by Step Financial Solutions Ltd is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register under firm reference number 780408.
Step By Step Financial Solutions is registered in England and Wales under company number 08946989 at registered address Unit 314, Solent Business Centre, 343 Millbrook Road West, Southampton, SO15 0HW.

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