At Entire FS, we work with many business owners and high net worth individuals, who have been making their pension contributions and using their maximum ISA allowances each year. However, we find that one area that could often be better protected is their business.

You might have heard the phrase ‘relevant life insurance.’ This type of assurance plan is available to employers and provides an individual death in service benefit for an employee (including salaried directors). It works as a tax-efficient life insurance policy and is designed to pay a lump sum if the employee dies (or is diagnosed with a terminal illness) whilst employed during the length of the policy. It’s set up by the company and the proceeds go directly to the employee’s family or financial dependants.

But what we find a lot of people don’t realise is that if you’re an individual director, you can get the company to pay for your personal insurance as a legitimate business expense.

Would you like to discuss your requirements for business protection with us? Request a call back from a member of our team

In order to decide who you should protect under key man insurance, consider if there would be significant loss of profit or key financial concern, if that person was not contributing for an extended period of time.

Some things to remember however are that any such relevant life insurance plan or key man insurance must be written into a discretionary trust and there is no cash value at any time.

If you would like to discuss your requirements for business protection with us to make sure you are taking full advantage of the options available, do get in touch – we‘d be delighted to help.


Liability insurers pay out £8.9m every day to protect businesses*
*Source Association British Insurers 2015

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