A relevant life insurance policy enables employers to provide individual death-in-service benefits for their UK-resident employees who are aged 17 to 71 when the policy is established. The policy, which is applied for and paid for by the employer, pays out a tax-free lump sum if the insured employee dies, or is diagnosed with a terminal illness, whilst in the service of the employer.
Relevant life plans are available only where an employer-to-employee relationship exists, for example, employees of a limited company. For that reason, relevant life insurance is not available to sole traders, a partnership’s equity partners or equity members of a Limited Liability Partnership.
