In plain English
It’s life insurance for an employee or director that the company pays for. If the person dies during the policy, it pays a lump sum to their family. Because the business pays, it’s usually more tax efficient than the person paying for the same cover personally, which makes it popular with directors of small limited companies.
A good fit if…
You’re a director of a limited company, or an employer who wants to offer death-in-service cover without setting up a group scheme.
Worth asking us about
How the tax treatment works for your company, how much cover you can have, and offering the same cover to key staff.
The details
The proceeds go directly to the employee’s family or financial dependants.
Cover features
- Counts as a tax-deductible business expense
- The premiums are paid monthly
- Guaranteed premiums
- Benefits usually free from inheritance tax
- Maximum amount of cover available is £10 million
Questions people ask us
Who can be covered?
Employees and salaried directors of a limited company. It isn’t available to sole traders or equity partners.
Does the payout go to the business?
No. It goes directly to the person’s family or financial dependants. If you want to protect the business itself, ask us about our other business cover.
Is it really tax deductible?
Premiums are normally treated as an allowable business expense and aren’t taxed as a benefit in kind for the employee. Your accountant will confirm how it applies to your company.
How it works
- Drop us a message
- Have a proper chat
- We keep looking after you