Relevant Life Insurance

Relevant life insurance is a type of policy that a business can take out to provide life insurance for an individual employee.  It’s an alternative way employers can provide death-in-service benefits for employees outside of a registered group life scheme. With our relevant life insurance, we can cover up to 35 times salary (depending on age).

Where is it suitable?

If a business is too small to qualify for a group scheme, the business can arrange life insurance as a tax-efficient benefit for employees.

Relevant life insurance can be purchased in addition to a group scheme. It doesn’t count towards annual or lifetime pension allowances; this may be particularly appealing to high-earning employees.

What it provides

Relevant life insurance gives employees free life insurance, as it’s applied for and paid for by the business. It is written into trust and pays out a lump sum to trustees for the benefit of the beneficiaries if employees die or are diagnosed with a terminal illness that meets our definition while employed during the policy term. It’s a benefit that can make staff feel valued. And it’s tax-efficient too - for all parties.

Premiums may be treated as an allowable expense for the company in calculating its tax liability.

Premiums are usually viewed as an allowable business expense, not a benefit-in-kind. This means employees don’t need to pay income tax or National Insurance on premiums - a potentially significant saving.

Any payout from the policy will not count towards an employee’s lifetime pension allowance.

Smart Health

Meet Smart Health - the health and wellbeing service from AIG, designed with your physical and mental wellbeing in mind. Whether you need to talk to a registered UK GP or want to get some hints and tips from a nutritionist, you’ll be able to chat to a professional 24/7, 365 days a year and from anywhere in the world - all at no additional cost. There’s no cap on how many times you can use it, and your partner and any children up to age 21 can take advantage too.

FIND OUT MORE

Smart Health is provided to AIG Life Limited customers by Teladoc Health. We want to let you know that these services are non-contractual, which means they don’t form part of the insurance contract with us. If our partnership with Teladoc Health ends, these services could be changed or withdrawn in the future.

*Smart Health is available to insured employees of Group Life and Group Critical Illness clients. And to all employees of Group Income Protection clients. 

Literature and support materials

Relevant Life Insurance - Key Facts

This document describes what is covered by Relevant Life Insurance, who can buy it and how it works

Download Updated 29 Sep 24