Relevant Life Cover allows employers to offer a death-in-service benefit to their employees. It is a tax-efficient life insurance policy, set up by the employer and pays out a tax-free lump sum on the death (or diagnosis of a terminal illness depending on the insurer) of the person insured. The proceeds go to the employee’s family, financial dependants and/or other nominated beneficiary.

This cover might benefit high-earning employees who might exceed their personal pension lifetime allowance or have members of group schemes who want to top up their benefits.