Relevant Life Cover Quotes

With many insurers offering relevant life cover as a tax-efficient way to offer life insurance to company directors and employees, you may be wondering how quotes are calculated, or how to even begin searching for the right policy for your business.

It can be tempting to opt for the cheapest insurance you can find, however, this price usually reflects the quality of the cover, and it may not include everything you need it to. With this in mind, it’s important that you come to a decision based on what meets your needs and circumstances.

In this article, we take a look at how much coverage you can get, what sort of quotes could you expect from a provider, and how to access the most competitive premiums.

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How do I get relevant life cover quotes?

When you’re ready to start getting quotes for relevant life insurance, there are certain details and factors that you’ll need to consider beforehand, as insurers will ask you various questions to determine what sort of policy they can give you and at what price. However, working with an expert insurance provider can make this process run more smoothly for you.

You’ll also need to bear in mind that the cover is arranged on an individual and life-of-another basis with the employer as the policyholder and the employee as the person insured.

The factors that impact what sort of cover you and/or your employees receive can include:

  • The level of cover.
    This is a key policy factor, and the more cover you require from the policy, then you’ll typically be quoted a higher premium.
  • How long the policy lasts.
    The longer the policy term, the more likely it is that you may make a claim, so your premiums may be more expensive.
  • Your age.
    If you or your employees are of an older age, there is a greater risk of passing during the term length.
  • Your general state of health.
    If you have a current medical condition which could limit your life expectancy, then you’ll likely pay more for your relevant life insurance.
  • If you smoke.
    Again, smokers are deemed to have a lower life expectancy and may induce other health risks, so premiums may be higher.
  • Family medical history.
    If any of your immediate family have suffered a health condition, your premiums may rise as there is a greater chance of you being affected.
  • Your activities.
    If you participate in specific recreational activities that are deemed ‘hazardous’ by insurers (such as mountain biking and scuba diving), then you may end up paying more as the risk of death is higher.

There are also other ‘optional extras’ that you can add to your policy, such as critical illness cover, which can boost the amount you’re quoted for.

It’s important that you’re honest when answering these questions, as any misinformation from you and/or your employees can result in your policy being voided in the event of a claim.


How much cover can I have?

The amount of cover you need will depend on the number of employees you want to cover, and whether you need to include any ‘optional extras’ in your policy to cater to everyone’s needs and circumstances. Each policy will come with a set of ‘standard’ features, for example the option to transfer the policy if an employee leaves to work elsewhere.

Bear in mind that the more ‘optional extras’ you pick, the higher your monthly premiums may be. These extra features may include total permanent disability and significant illness benefit, which will be included if you opt for a relevant life insurance plan with critical illness cover.

What’s the maximum sum assured I could get?

Many insurers recommend that the amount paid out (the sum assured) to an employee’s beneficiaries is set to a multiple of the employee’s age and annual wage. These will be different depending on the provider you go with, but generally, it could be calculated like this:

  • 18-39 years of age: covered for up to 25 times their salary
  • 40-59 years of age: covered for up to 20 times their salary
  • 60-69 years of age: covered for up to 15 times their salary

For example, a 32-year-old employee on £30,000 a year could be covered for £750,000 based on a multiple of 25 times their salary. On the other hand, a 68-year-old director on £100,000 per year could receive £1.5 million based on 15 times their salary.

Many insurance providers will set a maximum limit on how much they’ll cover for, for example, £10 million. Providers may also require evidence of earnings if an employee’s covered amount goes above a specified limit, for example, £3.5 million.


Is there a comparison tool I can use?

There are plenty of online comparison websites you can use to get a rough idea of what’s available, however, take these with a pinch of salt. This is because companies tend to pay to feature their policies on these comparison websites, so you are only seeing a tiny snapshot of what’s actually available on the market. Moreover, these tools are not bespoke to you.

This is why working with an experienced financial advisor like the ones we work with can make all the difference, as they can use their expertise and ‘whole-of-market’ access to find the best products for your needs at the most competitive premiums. Get in touch to find out more.

Our advisers are regulated by The Financial Conduct Authority and so you will be dealing with a highly trained person that adheres to strict rules of conduct.


How much will relevant life cover cost?

The amount your monthly premiums will come to will depend on the level of cover you choose, and how many employees you wish to cover under the policy.

Can I get a quote online?

You can get instant policy quotes online from many insurance providers, however, these quotes will be very generic and won’t be an accurate reflection of what you’re likely to get, especially if you need to add any extras to your policy.

Independent insurance providers have whole-of-market access, so they can source the best deals that may not even be available to the public. Because of their exclusive access, they can often secure great deals directly with insurance providers.

Should I use an online calculator tool?

You can find calculators online which will give you a rough estimation of the amount they could pay out to your beneficiaries. However, you can get a ballpark calculation without using a calculator, as you only need to times your salary based on the multiple determined by your age. For example, a 42-year-old on a salary of £28,000 a year could get £560,000 based on a multiple of 20 times their salary.

For a more accurate figure, speak with one of the fully qualified insurance advisors we work with.


How can I get the best relevant life cover quotes?

The best way to find the best quotes for your business is to look at and compare as many policies as possible to ensure that you find the best one. This is why working with a fully qualified expert can help, as their whole-of-market access means that they can find products suitable for your needs and compare them against each other to find your perfect match.


Speak to an expert

If you want to save time and hassle, call 0808 189 0463 or make an enquiry for a free, no-obligation chat.

We’ll match you with one of the experts we work with who can use their independent, whole-of-market access to search for the best policies with the most competitive premiums.

We'll match you with your perfect financial advisor

Save time and money with an expert who specialises in cases like yours

We'll match you with your perfect financial advisor

Save time & money with an expert who specialises in cases like yours.

We’ll match you with your perfect financial advisor – for free.