Relevant Life Insurance Bournemouth – A Smart Protection
For many business owners, directors, and high earners, protecting family and dependents through life cover is essential. But traditional group life schemes are not always suitable, especially for smaller businesses, sole directors, or companies with only a few employees. This is where a relevant life plan can provide a flexible and tax-efficient solution.
At Pineapple Insurance Services, we specialise in helping companies and individuals set up relevant life insurance that provides the right protection while maximising the available tax benefits.
Why Choose Pineapple Insurance Services?
At Pineapple Insurance Services, we specialise in tailoring business protection solutions for UK companies. We work closely with top UK insurers to ensure you receive comprehensive cover that fits your company’s structure and goals. Our experienced advisors will help you:
Understand the different shareholder protection options
Calculate appropriate levels of cover
Set up cross-option agreements
Arrange tax-efficient policies
Review and adjust your protection as your company grows
A relevant life plan is a type of life insurance arranged by a business on behalf of an employee, usually a director or key member of staff. If the individual passes away while employed, the policy pays a tax free lump sum to their family or nominated beneficiaries.
Unlike some traditional group schemes, relevant life policies are set up under a discretionary trust, which ensures the money goes directly to the chosen beneficiaries. This arrangement usually avoids inheritance tax, keeping the benefit outside of the employee’s estate.
The Benefits of Shareholder Protection
• Control remains within the business
• Prevents unwanted third-party involvement
• Provides financial certainty
• Strengthens investor confidence
• Shows forward planning and responsibility
Shareholder protection doesn’t just protect shareholders – it protects the entire company and its long-term goals. It’s a smart move for any business that values structure, continuity, and fairness.
Let Pineapple Bring You Peace of Mind
Private healthcare isn’t just for individuals.
We support local businesses and SMEs across Bournemouth with health insurance and employee wellbeing solutions.
Our business healthcare services include:
• Private Medical Insurance for staff
• Health Cash Plans that cover routine treatments like dental and optical care
• Access to virtual GPs, mental health helplines, and more
• Group plans that are flexible, scalable, and cost-effective
Offering these benefits helps boost employee morale, reduce absenteeism, and attract top talent in today’s competitive job market.
It shows your commitment to employee wellbeing, creates a healthier and more productive workplace, and positions your company as a forward-thinking, caring employer that people want to work for and stay with.
Relevant life cover is particularly suitable for:
• Limited companies – offering protection for directors and employees without needing a full group life scheme.
• Sole traders – not for themselves, but for employees they may want to cover.
• High earners – those who may be close to or already affected by lifetime pensions limits.
• Small business owners – who want to provide valuable protection benefits without the cost or complexity of a wider group policy.
Benefits of Relevant Life Insurance
There are many benefits of relevant life cover for both the employer and the employee:
For Employers
• Tax deductible: Premiums are treated as a legitimate business expense, reducing your corporation tax bill.
• No benefit in kind: Premiums are not classed as a taxable perk, so there’s no additional National Insurance or income tax to pay.
• Flexible and affordable: Unlike a group scheme, you can cover one person or a small number of staff.
For Employees
• Tax free lump sum paid to their family if they pass away.
• Protection also applies if diagnosed with a terminal illness while employed.
• Provides peace of mind without affecting personal tax allowances.
• Keeps payouts outside of the estate thanks to a discretionary trust, minimising inheritance tax exposure.
- 1. Employer Takes Out the Policy
- 2. The business sets up a scheme covering some or all of its employees.
- 3. Employee Becomes Unable to Work
- 4. If a member of staff is unable to work due to illness or injury, they notify the employer.
- 5. Waiting (Deferment) Period
- 6. There is usually a deferment period – the time between first absence and when benefits begin. During this time, the employee may rely on statutory sick pay or any company sick pay scheme.
- 7. Payments Begin
- 8. After the deferment period, the policy pays a percentage of the employee’s salary (often 50–75%) until they either recover and return to work, reach retirement age, or reach the maximum payment period.
- 9. Additional Services
- 10. Alongside the financial payout, insurers provide rehabilitation, counselling, and emotional support services to encourage a successful return to work.
Tax Benefits of a Relevant Life Plan
One of the main attractions of relevant life insurance is the tax benefits:
• Premiums are usually tax deductible against profits as a business expense.
• They do not count as a benefit in kind, so neither the employer nor employee pays extra tax or National Insurance.
• The payout is normally free from both corporation tax and inheritance tax, thanks to the discretionary trust.
This makes relevant life cover especially appealing for directors of small businesses who want protection without increasing their personal tax burden.
Relevant Life Insurance vs Death in Service Benefit
Many larger companies offer a death in service benefit as part of their group scheme. This provides employees with a multiple of their salary if they pass away while employed.
However, smaller businesses often cannot access group schemes, or it may not make financial sense. In these cases, a relevant life plan provides similar protection on an individual basis, with the added advantage of strong tax benefits.
Why Work with Pineapple Insurance Services?
We’re a friendly, expert team that believes in doing things properly. You’ll also have peace of mind knowing we only work with providers who are authorised and regulated by the Financial Conduct Authority, like Legal & General.
When you work with Pineapple, you’re choosing:
Support
A single point of contact who knows your business
Expertise
Clear, practical advice with no jargon
Team Tailored
Full scheme management from launch to renewal
Clear Clarity
Tailored guidance for integrating multiple benefits
Flexibility
Support that goes far beyond a quote
The amount of cover available depends on several factors, including salary, dividends, and benefits in kind. Insurers typically offer multiples of salary (for example, 10–25 times remuneration).
Because each policy is tailored, it’s important to work with a financial adviser who understands both the protection market and the tax implications. At Pineapple Insurance Services, we’ll help you calculate the right level of cover for your needs.
Why Use a Discretionary Trust?
All relevant life plans must be written into a discretionary trust. This ensures:
• The payout goes directly to the nominated beneficiaries.
• It doesn’t form part of the employee’s estate, avoiding inheritance tax.
• There is greater control and flexibility over how the funds are distributed.
This trust element is one of the key differences between relevant life and standard personal life insurance policies.
When Relevant Life Is a Good Fit
Relevant life cover is especially useful for:
• Directors of small businesses who want life cover funded by their company.
• Employers who want to reward key staff with valuable protection.
• High earners concerned about exceeding lifetime pensions allowances.
• Businesses not large enough to justify a group scheme but still wanting employee benefits.
It can also sit neatly alongside other policies such as income protection or critical illness insurance to create a comprehensive package of protection benefits.
Why Choose Pineapple Insurance Services?
At Pineapple Insurance Services, we are experts in business protection. As an independent broker, we work with leading insurers to secure the right policy for your circumstances.
• We make relevant life policies simple to understand.
• We explain the tax advantages clearly.
• We ensure the amount of cover is appropriate for your situation.
• We manage the setup of the discretionary trust to keep everything compliant.
• We’re fully authorised and regulated by the Financial Conduct Authority.
Most importantly, we provide ongoing support, ensuring your policy remains suitable as your circumstances change.
Get Started with Relevant Life Insurance
At Pineapple Insurance, we craft tailored insurance solutions for businesses and individuals.
Our partnerships with leading insurers allow us to offer options that align with your values, backed by expert advice and exceptional service. We ensure all clients receive the most suitable plans from trusted providers within budget.
CLIENTS AND TESTIMONIALS
“Discussing healthcare benefits with Pineapple Insurance is always a positive experience. Their team combines expert knowledge with a personable approach, creating effective and budget-conscious solutions.”
