"It’s a win-win that advisers can easily explain and position as part of a broader protection strategy."
For many advisers, stepping into the world of business protection can feel like crossing into unfamiliar territory. Unlike individual protection, these products involve navigating company structures, tax implications, and employee benefit strategies.
Relevant Life is a natural first step: straightforward to explain, simple to set up, and packed with benefits that make sense to both employers and their staff. While often overlooked, Relevant Life is a product that offers a powerful entry point into business protection.
At its core, Relevant Life is essentially Life Insurance, paying out a lump sum if the insured individual dies during the term of the policy. The key difference lies in who sets it up and who benefits.
Relevant Life is arranged by an employer for an employee, providing death in service benefits without the need for a group risk scheme. This makes it particularly attractive to small & medium-sized enterprises (SMEs) where group policies may be financially or administratively impossible.
“The potential reach of Relevant Life is enormous, with 5.5mn SMEs currently operating in the UK.”
SMEs are often looking for ways to provide meaningful benefits to their employees without breaking the bank, and Relevant Life fits that bills perfectly.
Unlike Life Insurance, which is paid for by the individual and doesn’t provide any tax advantages to the business, Relevant Life is tax efficient. Premiums are typically treated as an allowable business expense, meaning they can be deducted from corporation tax.
There is no National Insurance (NI) to pay on the premiums either, and the payout is usually free from Income Tax, Inheritance Tax (IHT), and Capital Gains Tax. This makes Relevant Life not only a smart financial decision for the business, but a compelling benefit for the employee.
“It’s a win-win that advisers can easily explain and position as part of a broader protection strategy.”
For advisers new to business protection, Relevant Life offers a low-barrier way to start building relationships with business owners. It speaks directly to the concerns of SME owners: protecting their people, managing costs, and offering competitive benefits.
Employees are increasingly looking for more than just salary. Benefits that support health, wellbeing, and financial security are becoming key differentiators in recruitment and retention.
These conversations can naturally evolve into discussions about Shareholder Protection, Key Person Protection, and even Executive Income Protection. By starting with Relevant Life, advisers can demonstrate value quickly and build trust, laying the groundwork for more complex protection planning down the line.
“The SME sector is thriving, representing 99.8% of the total UK business population, and employing 16.6mn people.”
These businesses are agile, ambitious, and often underserved when it comes to financial advice. Many are still recovering from economic pressures and are cautious about spending – but they understand the value of protecting their people.
Relevant Life offers a cost-effective way to do just that. It’s simple to set up, easy to explain, and delivers real value. For advisers, it can present a way to enter the world of business protection with confidence and credibility.
