RELEVANT LIFE PLAN
Life cover for directors — paid by your company, not you.
A Relevant Life Plan is an individual life insurance policy taken out and paid for by your company on behalf of a director or key employee. The payout reaches your family free of income tax, National Insurance and Inheritance Tax.
See how much you could save
A Relevant Life Plan is an individual life insurance policy taken out and paid for by a company on behalf of a director or key employee. It works much like a group death-in-service scheme — but it's available even to a company with a single director. The payout goes to the family free of income tax, National Insurance and Inheritance Tax.
— BENEFITS
Six reasons LTD directors choose an RLP
Your company pays, not you
The premium comes from company funds — you don't have to fund cover from salary that's already been taxed.
An allowable business expense
The premium can reduce your Corporation Tax bill — provided it meets the "wholly and exclusively" test.
No National Insurance
Neither the company nor the employee pays NI on RLP premiums — unlike a pay rise used for the same purpose.
Not a benefit in kind
An RLP doesn't appear on a P11D and doesn't create an additional tax charge for the person insured.
Payout outside your estate
The policy is written in trust — the payout reaches the family quickly, free of Inheritance Tax and without waiting for Grant of Probate.
No impact on pension allowances
An RLP doesn't count towards your Lifetime/Pension Allowance — important for higher earners.
— HOW MUCH YOU COULD SAVE
Same budget. Higher level of cover.
For a higher-rate taxpayer, funding cover through the company instead of from net salary removes the double hit of income tax and National Insurance you'd otherwise pay before you even reach for the premium.
In practice: the same budget buys a higher sum assured — or the same cover at a genuinely lower cost.
Ask for a personal comparisonPERSONAL POLICY
RELEVANT LIFE PLAN
Illustrative for a higher-rate taxpayer — methodology: Royal London Adviser / HMRC guidance
— WHO IT'S FOR
Do you qualify?
Eligible
- LTD company directors employed on PAYE
- Key employees on the payroll
- Single-director companies
Not eligible
- Sole traders
- Partners in a partnership and LLP members
- Shareholders who aren't also employees
— PROCESS
How it works — step by step
Free consultation
We look at your company structure, remuneration and any existing cover.
Choose the sum assured
We work out the right level of cover based on your income and commitments.
Application and underwriting
We guide you through the full application process with your chosen insurer.
Policy written in trust
We set the policy up in a discretionary trust — so the payout reaches your family quickly, free of Inheritance Tax.
Cover in place
You receive the full documentation — ready to hand to your accountant.
The company pays the premium as a business expense.
Illustrative example for a higher-rate taxpayer — actual savings depend on your remuneration structure. Methodology source: HMRC / Royal London Adviser.
— HMRC COMPLIANCE
Not marketing. HMRC rules.
The tax treatment of an RLP comes directly from HMRC guidance — not from an insurer's interpretation.
Definition and qualifying rules for a "relevant life policy" under the Employment Income Manual.
gov.uk/hmrc-internal-manuals →Income tax exemption for death benefits provided by an employer.
gov.uk/hmrc-internal-manuals →The "wholly and exclusively" test that determines Corporation Tax deductibility for director-shareholders.
gov.uk/hmrc-internal-manuals →We don't provide tax advice. Final qualification depends on individual circumstances — we recommend checking with your accountant before making a decision.
FAQ
Yes — an RLP is available even for single-director companies. That's one of its main advantages over group life cover, which usually requires a larger workforce.
Protect your family — at a cost your company can bear.
A free, no-obligation consultation. No pressure, no commitment.