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 paid by the company and are typically treated as a business expense.

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 are generally treated as a business expense. 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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