Relevant Life is a term for an assurance plan available to employers to provide an individual death in service benefit for an employee. It's designed to pay a lump sum if the person covered dies or is diagnosed with a terminal illness whilst employed during the term.
Paid for by the employer, it is available to directors and employers looking to provide 'death in service' benefits, but having too few employees to set up a group scheme.
Directors wishing to provide their own individual ‘death in service’ benefits without taking out a Group scheme.
Relevant Life insurance is not available where there is no employer/employee relationship, as such sole traders, equity partners of a partnership or equity members of a Limited Liability Partnership are unable to set up a Relevant Life policy. Relevant Life policies are tax efficient and as such are generally less expensive than standard life insurance policies.