Last Updated: 7th August 2026
If you’re a business owner or limited company director, protecting your family’s financial future is just as important as protecting your business. Relevant Life Cover (RLC) offers a tax-efficient way for many employers to provide life insurance for employees, including directors of limited companies.
Unlike a personal life insurance policy, Relevant Life Cover is arranged and paid for by the business, making it an attractive option for many small businesses and company directors. It can provide valuable financial protection for your loved ones while potentially offering tax advantages, depending on your individual circumstances and current tax legislation.
At AIMS NI, we provide independent, whole-of-market advice across Northern Ireland. We take the time to understand your business and personal circumstances before comparing policies from a wide range of insurers, helping you choose cover that suits your needs.
RLC is a type of life insurance designed for employers who want to provide death-in-service style benefits for an individual employee. It is particularly popular with limited company directors and small businesses that may not have enough employees to establish a traditional group life insurance scheme.
The policy is paid for by the business and provides a lump sum payment to your chosen beneficiaries if you pass away during the policy term. Depending on the insurer, some policies may also include terminal illness cover.
Relevant Life Cover is designed for individual employees rather than an entire workforce, making it a flexible solution for many smaller businesses
Relevant Life Cover is arranged by the employer on behalf of an employee. The business pays the policy premiums, while the employee is the person insured under the policy.
If the insured person passes away during the policy term, the policy normally pays a lump sum to their chosen beneficiaries through a trust. This helps ensure the money reaches the intended recipients as efficiently as possible.
Because every insurer has different policy features and eligibility criteria, choosing the right cover is important. At AIMS NI, we compare a wide range of RLC policies to help you find a solution that reflects your circumstances.
Relevant Life Cover is commonly chosen by limited company directors, business owners and employers who want to provide life insurance for individual employees.
It can be particularly suitable for small businesses that do not qualify for, or do not require, a group life insurance scheme. Many directors also choose RLC because it allows the business to arrange life insurance in a tax-efficient way, subject to individual circumstances and current tax rules.
Whether you employ one person or several members of staff, RLC may provide valuable financial protection while supporting your wider business protection strategy.
Relevant Life Cover is commonly chosen by limited company directors, business owners and employers who want to provide life insurance for individual employees.
It can be particularly suitable for small businesses that do not qualify for, or do not require, a group life insurance scheme. Many directors also choose RLC because it allows the business to arrange life insurance in a tax-efficient way, subject to individual circumstances and current tax rules.
Whether you employ one person or several members of staff, RLC may provide valuable financial protection while supporting your wider business protection strategy.
Although both policies provide life insurance, there are important differences between RLC and personal life insurance.
A personal life insurance policy is arranged and paid for by the individual using their own income. RLC, however, is arranged and paid for by the employer on behalf of an eligible employee.
For many limited company directors, RLC may offer a more tax-efficient way of arranging life insurance than paying personally for an equivalent policy. However, the most suitable option depends on your business structure, personal circumstances and current tax legislation.
At AIMS NI, we’ll explain both options clearly, helping you understand which solution best suits your needs.
Relevant Life Cover is a specialist protection product, and every insurer has different eligibility criteria, policy features and underwriting requirements. Understanding how the policy fits alongside your wider financial and business planning is just as important as choosing the right level of cover.
At AIMS NI, we provide personalised advice tailored to your circumstances. We compare RLC policies from across the market, explain the available options in straightforward language and guide you through the application process from start to finish.
Our aim is to help you protect both your family and your business with confidence, knowing you’ve chosen a policy that’s appropriate for your individual needs.
One of the main reasons business owners choose RLC is because it can offer tax advantages compared with arranging a personal life insurance policy. In many cases, premiums are paid by the business rather than personally, making it a tax-efficient way of providing life cover.
Depending on your individual circumstances and current tax legislation, premiums may qualify as an allowable business expense, and the policy may not be treated as a benefit in kind. Policies are also usually written in trust, which may provide additional inheritance tax planning benefits.
Tax treatment depends on your personal circumstances and may change in the future, so it’s important to seek both financial and tax advice before making a decision.
Relevant Life Cover is designed to provide a lump sum payment to your chosen beneficiaries if you pass away during the policy term.
Depending on the insurer, some policies may also include terminal illness cover, allowing a claim to be made if you’re diagnosed with a qualifying terminal illness during the policy term.
Every insurer offers different policy features, optional benefits and exclusions. At AIMS NI, we’ll explain exactly what’s included, helping you choose cover that reflects both your personal and business needs.
At AIMS NI, we understand that protecting your family and your business often goes hand in hand. That’s why we provide clear, independent advice tailored to your individual circumstances rather than recommending a one-size-fits-all solution.
As a whole-of-market broker, we compare RLC policies from a wide range of insurers, helping company directors, business owners and employers find suitable protection at competitive premiums.
With over 20 years of experience and authorisation from the Financial Conduct Authority, you can be confident you’re receiving professional advice designed around your long-term financial goals.
If you’re considering Relevant Life Cover, AIMS NI is here to help you understand your options and arrange suitable protection with confidence.
We compare policies from across the market, explain the available choices clearly and provide personalised advice tailored to your business, your family and your long-term financial goals.
Contact AIMS NI today for a free, no-obligation consultation and discover whether RLC could be the right solution for you.
RLC is a life insurance policy arranged and paid for by a business to provide financial protection for an individual employee, including many limited company directors.
RLC is commonly suitable for limited company directors, business owners, employers and small businesses looking to provide individual life insurance for employees.
RLC may offer tax advantages depending on your personal circumstances and current tax legislation. Professional financial and tax advice should always be sought before making a decision.
Neither is necessarily better. RLC is designed for businesses and eligible employees, while personal life insurance is arranged and paid for by the individual. The right option depends on your circumstances.
Yes. RLC is particularly popular with limited company directors because it can provide a tax-efficient way for the business to arrange life insurance.
Yes. If a valid claim is made during the policy term, the policy normally pays a lump sum to your chosen beneficiaries through a trust.
As a whole-of-market broker, AIMS NI compares RLC policies from a wide range of insurers, providing independent advice tailored to your business and personal circumstances.
Disclaimer
THE VALUE OF INVESTMENTS AND THE INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.
THE PLAN MAY HAVE NO CASH IN VALUE AT ANY TIME.
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