Life Insurance & Business Protection FAQs

Question 1

What is a Relevant Life Plan?

Accepted Answer

A Relevant Life Plan is a tax-efficient life insurance policy set up by a company for a director or employee. Premiums are usually paid by the company and may qualify for corporation tax relief, subject to HMRC rules and the company's circumstances.

Question 2

How does key person insurance work?

Accepted Answer

Key Person Insurance pays out to the business if a key employee or director dies or is diagnosed with a serious illness, helping cover lost profits, recruitment costs or loan repayments.

Question 3

Is business protection insurance tax deductible?

Accepted Answer

The tax treatment depends on the policy type and purpose. Relevant Life Plans may qualify for corporation tax relief, subject to HMRC rules and the company's circumstances. We recommend seeking independent tax advice.

Question 4

What is shareholder protection?

Accepted Answer

Shareholder protection insurance ensures that if a shareholder dies or becomes critically ill, the remaining shareholders can buy back their shares, keeping control of the business.

Question 5

Do I need life insurance as a company director?

Accepted Answer

Yes — as a director your family may depend on your income. A Relevant Life Plan is the most tax-efficient way to arrange life cover through your company.

Frequently Asked Questions

Life Insurance

Critical Illness Cover

Income Protection

Relevant Life Plans

Key Person Insurance

Shareholder Protection

Business Protection — General

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