What is Relevant Life Cover

Our Managing Director Stuart d’Ivry offers help and support in relation to anything financial.

Firstly, thank you to all the readers that made contact after last month’s article specifically around pensions. It was great to see so many individuals especially directors make contact to ask further questions and understand the options that they have available to them to both save tax and save for their future.

As several business owners made contact, I thought I would continue to discuss tax efficiency options for your business. This month I cover the personal benefits and tax benefits of Relevant Life Cover.

In today’s fast-paced world, safeguarding the financial well-being of our loved ones is of paramount importance. Whether you’re an employer concerned about the welfare of your employees or an individual seeking to provide for your family’s future, relevant life cover offers a valuable solution. This insurance product provides a tax-efficient alternative to traditional life insurance, offering numerous benefits to both employers and employees.

So what is Relevant Life Cover?

Relevant life cover is a specialised life insurance policy designed for small businesses or individuals who do not qualify for group life schemes. It allows employers to offer life insurance benefits to their employees on an individual basis, while also providing personal coverage to individuals who are self-employed or not covered by traditional employment benefits.

Key Features and Benefits:

  • Tax Efficiency: One of the most significant advantages of relevant life cover is its tax efficiency. Premiums paid by employers are typically tax-deductible as a business expense, which can result in considerable savings for both the employer and the insured employee. Put simply if you are a business owner of a limited company and you are paying for life cover from your personal bank account you need to review this as soon as possible.
  • Tailored Coverage: Relevant life cover is customisable to suit individual needs. Policyholders can choose the desired coverage amount based on factors such as income, financial responsibilities, and future financial goals. This means that directors can tailor their cover to their own personal circumstances.
  • Flexibility: This insurance product offers flexibility in terms of beneficiaries. Policyholders can name specific individuals or trusts as beneficiaries, ensuring that the funds are directed exactly where they are needed.
  • Inheritance Tax Benefits: Relevant life cover can help mitigate inheritance tax liabilities. The policy pays out a tax-free lump sum to the beneficiaries, which can be used to cover inheritance tax or other financial obligations, ensuring that the intended recipients receive the full benefit amount.
  • Peace of Mind: Relevant life cover provides peace of mind to both employers and employees. Employers can demonstrate their commitment to their workforce by offering this valuable employee benefit, enhancing employee loyalty and retention. On an individual level, policyholders can rest easy knowing that their loved ones will be financially protected in the event of their untimely demise.


Relevant life cover offers a compelling solution for both employers and individuals seeking life insurance protection. With its tax efficiency, flexibility, and tailored coverage options, this insurance product provides peace of mind and financial security. By considering relevant life cover, employers can enhance their benefits package and attract and retain top talent, while individuals can protect their loved ones and ensure their financial well-being in the future.


So, who are Pure Wealth?

Pure Wealth are an independent financial advice practice offering holistic whole of market advice to individuals and businesses across South Wales. We are not tied to any company or provider and will work in partnership with our clients to offer bespoke financial planning typically on an ongoing basis. Pure Wealth is part of the wider Pure Advisory Group, which consists of specialists in other areas such as residential property, property investing, commercial property and development. This ensures that clients of the Pure Advisory Group have the peace of mind that they are receiving independent advice across all areas of their finances.

If you have any questions or subjects that you wish to ask to feature in future editions please get in touch via email.

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Article By Stuart d’Ivry

May 8th, 2024

Originally from Pembrokeshire, Stuart gained a BSc honors degree in economics from Cardiff Business School, studying accounting and management. In recent years Stuart has extended his knowledge of the Independent market, interviewing fund managers and consistently sourcing the best possible solutions for his clients.

Stuart began his career in 2003 as a graduate at NatWest, immediately he moved into premier banking. Then in 2012, Stuart joined Coutts Wales as one of four Associate Directors in Wales. Over four years at Coutts, he advised professionals, entrepreneurs, and sportspeople. For seven months, Stuart was a lending specialist to professionals and clients in sport and entertainment. Based in London, his role oversaw lending volumes in excess of £34 million. As a Director of Pure Wealth Stuart will be able to ensure his knowledge and expertise are offered throughout the process when planning client’s goals and objectives.

Outside work, Stuart enjoys travelling and spending time with his family. He is the treasurer of the local squash team and is slowly learning to play golf.

See more articles by Stuart