Resources
Relevant Life Calculator
Important information
This calculator is provided for illustrative purposes only and is designed to give a broad indication of the potential tax treatment of a Relevant Life policy. It does not constitute financial, tax, or legal advice.
Calculations are based on the 2026/2027 UK tax and National Insurance rates, which may change in the future. Actual tax treatment, premiums, and eligibility will depend on individual circumstances and HMRC rules at the time of application.
The calculator assumes that income tax and National Insurance are applied at a single rate across the full premium. In practice, this may vary depending on earnings, location, and personal tax position.
Acceptance of any Relevant Life policy is subject to insurer underwriting criteria, and terms and conditions will apply. We recommend speaking with a qualified adviser to confirm suitability for your specific circumstances.
FAQ
What actually happens if a shareholder dies without protection?
If a business partner passes away, their shares usually go to their family. This means you could suddenly be running your company with someone’s spouse or children, who might have no experience in your industry. Shareholder protection provides the money to buy those shares back. It ensures the family gets a fair cash payout and the remaining directors keep control of the business. It keeps things clean during a very difficult time.
Is business protection tax deductible?
In many cases, yes. Policies like Relevant Life Insurance or Key Person Insurance are often treated as an allowable business expense for corporation tax purposes. This is because the company pays the premium to protect its own financial interests. However, tax rules are specific and depend on the type of cover and the “wholly and exclusively” rule. We always recommend checking with your accountant to see how it applies to your specific setup.
How is Relevant Life different from standard life insurance?
Standard life insurance is usually paid for out of your own pocket after you have already paid income tax. Relevant Life is a company-paid policy. It doesn’t count as a benefit-in-kind, so it doesn’t increase your personal tax bill. It is effectively a way for your business to provide for your family in a much more tax-efficient way than a personal policy would allow.
What counts as a "Key Person" for insurance?
A key person is anyone whose absence would cause a serious financial hit to the business. It is often the founder or a director, but it could also be a lead developer, a top salesperson, or anyone with a niche skill set that would be hard to replace. If their death or illness would lead to a loss of profit or the loss of a major contract, they are likely a key person.
Can I get cover if I have a pre-existing medical condition?
Yes, it is often still possible to get cover. The insurers will look at your medical history during the underwriting process. They might apply a “loading” to the premium or exclude certain conditions, but many business owners with manageable health issues are still able to secure the protection they need. The most important thing is to be completely honest on your application.