Our tax calculator shows you the savings you can achieve by purchasing life insurance through your limited company, compared to a personal policy.
Please scroll down for notes, some key facts, and our contact form to get in touch with Broadbench, our life insurance partner.
Relevant Life Calculator (2025/26)
Relevant Life Insurance – tax-efficient protection for directors
Let your limited company pay the premiums — and claim the cost as a business expense.
Calculator notes and assumptions
- We have used the current England & Wales tax and NIC rates for the 2025/26 tax year
- The calculations demonstrate the tax efficiency of an RLP compared to a traditional life insurance policy. You should always check with your accountant to produce an individual calculation.
Relevant Life Insurance – key facts
A relevant life policy provides life cover for company directors and employees. Unlike personal life cover, the business pays the premiums, which results in tax advantages for both the business and the employee.
Advantages for your company
- Corporation Tax Relief—Premiums are usually tax-deductible as a business expense (if they meet HMRC’s “wholly and exclusively” rules).
- No Employer National Insurance Contributions (NICs)—Unlike salaried income, employers’ NICs are not payable on premiums.
- Not a P11D Benefit—Payments towards a policy aren’t classed as a benefit-in-kind. This means employees don’t pay additional income tax on the value of the premiums.
Advantages for you (the director or an employee)
- No income tax on premiums – the employer pays for the premiums, and they are not treated as benefits in kind so that you won’t pay any income tax on the value of the premiums.
- No Inheritance Tax (IHT) – The payout goes into a trust, keeping it outside the employee’s estate.
- Lump Sum Payout is Tax-Free – Beneficiaries receive a tax-free lump sum in the event of death.
Other features
- Portable – If you change employers, you should be able to transfer the policy to a new employer, or arrange for it to be transferred into your name.
- Flexible – Policies can be fully customised to suit individual needs and different levels of cover.
Further reading
Find out more about relevant life insurance
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