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FCA-Authorised Advisers | Whole-of-Market Access
British Life connects company directors with relevant life insurance policies. Protect your family while saving your business money with expert guidance, whole-of-market access and no fees.
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Company Directors compare Protection Insurance quotes.
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With your personal life insurance policy, you're paying premiums from taxed income, and your family may face inheritance tax on the payout. Without a relevant life plan, you risk:
Make sure your family gets full protection without having to pay unnecessary tax.
"We've seen too many business owners with personal life insurance who have been overpaying for years, not realising there's a more tax-efficient way. British Life connects company directors with advisers who specialise in relevant life policies. Speak to a professional to ensure your family gets full financial security without you paying more tax than necessary."
James Stait,
British Life
As a company director, you need life insurance that protects your family. But with personal life insurance, you're paying premiums from taxed income, and your estate may incur inheritance tax on the payout.
British Life connects you with FCA-authorised advisers who have whole-of-market access and specialise in relevant life insurance across the UK. These advisers work with leading insurers to secure tax-efficient policies. Your limited company pays the premiums as a business expense, you pay no income tax as a benefit-in-kind and your family receives the full lump sum benefit free from inheritance tax through a discretionary trust.
Be confident that your family is genuinely protected and your pension lifetime allowance remains unaffected.
Discover how straightforward director's life insurance can be.
Our service is completely free. Insurers pay the advisers we connect you with, but only when they secure appropriate cover for you. The cost of your relevant life insurance policy depends on your age, medical history, whether you smoke or have a critical illness, and how much cover you need. Because your company pays the premiums as a tax-deductible business expense and claims corporation tax relief, the actual cost to your business is around 25% less than the headline premium.
Relevant life policies are suitable for company directors who want their company to pay for their life cover and offset the premiums against corporation tax. They're ideal for small businesses with too few employees for a group life insurance scheme and for high-earning directors who don't want the benefits counting towards their lifetime pension allowance.
They're not suitable for sole traders or equity partners, although their employed staff could be covered.
To qualify for tax concessions, cover must be paid as a single lump sum before age 75, with only death and terminal illness benefits provided through a discretionary trust. Beneficiaries are normally restricted to family members and dependents. The maximum amount depends on your remuneration and age, with some insurers offering up to 15 times your remuneration. Your adviser will explain the specific limits for your circumstances.
Benefits are paid through a discretionary trust to meet tax concession requirements. The trust ensures benefits cannot be taxed as part of your company's trading income or assets. Trustees (normally your company's directors) have flexibility on whom they pay benefits to, guided by your nomination form. Using a trust ensures that, in most circumstances, benefits are paid free of both income tax and inheritance tax.
The lump sum depends on the level of cover you choose but is typically up to 15 times your remuneration, including salary, regular dividends and benefits-in-kind. Your adviser will help you calculate the right amount based on your family's needs, outstanding debts and future living costs. The full lump sum is paid tax-free to your beneficiaries through the discretionary trust.
Yes. When underwriting your relevant life insurance policy, insurers will assess your medical history. Pre-existing conditions, life expectancy, lifestyle factors and family medical history can affect your premiums or coverage terms. Your adviser will work with insurers across the whole market to find the best cover for your circumstances, even if you have medical conditions that might make standard policies more difficult to obtain.
Yes. That's exactly what relevant life insurance is designed for. Your limited company pays the premiums as an allowable business expense and claims corporation tax relief. Unlike personal life insurance, you pay no income tax on this benefit. This structure is only available through limited companies for directors and key employees, not for sole traders or equity partners.
This type of policy (also known as Relevant Life Insurance) can provide a complete tax-free solution to life insurance for company directors where both the premiums and the lump-sum payment in the event of a claim are tax-free. The premiums are not classed as a benefit-in-kind and, if the policy is written into a discretionary trust, then any payout is not subject to inheritance tax.
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Life Cover for Company Directors (known as a Relevant Life Policy) is a way of providing death-in-service benefits on an individual basis no matter how small your business is. They are not classed as a ‘benefit in kind’ so no tax is payable on the premiums. In most cases the benefits can be paid free of inheritance tax provided the benefits are payable through a discretionary trust.
If you’re a company director and you already have life insurance in place to protect your family, you could be paying more tax than you need to.
What are the benefits?
What are the advantages of using a discretionary trust?
Are there any limits to the cover I have?
Who are relevant life policies suitable for?
They are not suitable for the self-employed or equity partners, although their employed staff could be covered.
This type of protection cover will require two separate policies for a company director as critical illness cover is classed as a benefit-in-kind (unlike the life insurance element - see above) and will not therefore qualify for a tax exemption on the premiums.
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This type of policy pays out a regular monthly benefit should a company director become too ill or injured to work. It is popular with contractors and directors working in their own limited company and covers up to 80% of their income (wages or dividends) in a tax-efficient way.
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Executive Income Protection operates in a very similar way to Personal Income Protection, providing a regular income if the person insured is unable to work due to illness or injury.
The main difference between the two types of policy is that Executive Income Protection can cover up to 80% of the individual's income, whether from wages or dividends or both, whereas most standard policies typically only cover up to 60%.
As such, it is an attractive benefit for high-earning small business owners and contractors.
The cost of the premiums is determined by how much cover is required, the age of the individual to be covered, any existing or past health conditions, what their current role entails, how long the cover is to last, and how long they are prepared to defer the first payment.
The premiums are paid by the company and are tax-deductible, which is an additional saving compared to personal policies.
Along with other benefits available, Executive Income Protection can be a valuable component of an overall financial plan, especially those with high incomes and significant financial responsibilities.
This type of policy protects businesses financially if a key individual within the business (typically a company director) dies or can no longer act in any capacity with immediate effect. It is often required by lenders to cover the full repayment of a loan. It is an important consideration for many small and medium-sized businesses.
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Key Man Insurance or Key Person Insurance is essentially a form of life insurance for businesses. It is generally taken out by a business to compensate for financial losses that would arise from the death or extended incapacity of the key individual(s) of the business specified in the policy, and in turn ensure the continuity of the business.
There are generally three categories of loss for which Key Man Insurance can provide compensation:
As a result, a Key Man or Key Person can be anyone directly associated with the business whose loss can cause financial strain to the business. For instance, they could be a Director of a company, a Partner, key sales people, key project managers and people with specific skills or knowledge which is especially valuable to the company.
For free advice, speak to a UK based adviser on
0333 987 3960* (9am-5pm Mon-Fri)
The telephone service is provided in partnership with BQI Protection Ltd and the quotation service is provided by an FCA-authorised insurance specialist
It is possible to be protected with a life insurance or critical illness policy within 20 minutes provided the insurer does not require a GP report or medical.
A GP report or medical is normally required for large amounts of cover (over £400,000), or if your BMI is over 30, or you have any significant ongoing or past medical issues, or if you are involved in dangerous job or high risk hobby.
Find out how much cover you might need by using our simple online calculator. It will take into account your outstanding mortgage, any loans or credit cards, your monthly income and how many children you have.
Ultimately the right amount of cover is often a balance between what might be an ideal figure and what you can sensibly afford.
We have tracked down the very best protection insurance advisers in the UK to ensure you have access to great advice and the best products from the leading insurers.
Instead of pushy sales people, our advisers offer a more personalised service to guide you through the process and ensure you enjoy lasting peace of mind by making an informed choice.
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