How much does relevant life insurance cost? The cheapest and best relevant life quotes

7 min Read Published: 12 Mar 2020

What is Relevant life insuranceIn this article we look at relevant life insurance and explain what it is, why you should consider getting it for your employees, roughly what it costs and the best place to buy it.

What is relevant life insurance?

Relevant life insurance is a life insurance policy that is taken out and paid for by a company to provide a death-in-service benefit to its employees. Any proceeds arising from a death claim would be paid to the deceased employee's beneficiaries.

Why should I buy relevant life insurance?

If you are a small to medium sized business then it can be a relatively low-cost way to increase your benefits package that you offer your employees, whilst offering some tax benefits too. If you are a business owner, you can pay for your own relevant life insurance premiums through the business while also reducing the corporation tax bill, as relevant life insurance premiums are treated as an expense.

What are the benefits of relevant life insurance?

Relevant life insurance can be a cost-effective way to improve your employee benefits package while at the same time helping to reduce business taxes. There are additional benefits for your employees too and we cover these in more detail in our article 'What is relevant life insurance and should you have it'? 

How much does relevant life insurance cost?

The cost of relevant life insurance depends on a number of factors. The cost will vary from employee to employee as it is underwritten based on the employee's age, health, smoker status and even hobbies and pastimes. It is for this reason that we wouldn't recommend using a relevant life insurance calculator (as they are not able to tailor the quote to each individual). We would recommend that you speak to an independent specialist when gathering relevant life insurance quotes as not only will they be able to tailor the quotes to each individual, they will be able to recommend multiple insurers, meaning you can make significant savings. See below for some example quotes and further information on who you should speak to in order to get the cheapest and best relevant life insurance quotes.

The cheapest and best relevant life insurance quotes for £100,000 for a Non Smoker

Below we have listed the best quotes for £100,000 relevant life insurance for non-smokers aged between 20 and 60 (Taking them up to the age of 65). Pricing for life insurance is gender neutral, meaning you pay the same whether you are male or female. The quotes below assume good health, a clean family history and no dangerous hobbies or pastimes.

Age Insurer Cost
20 AIG £5.30
25 Aviva £5.59
30 AIG £6.64
35 Scottish Widows £7.69
40 Aviva £9.68
45 Aviva £11.56
50 AIG £14.90
55 Scottish Widows £20.41
60 Aviva £23.62

The cheapest and best relevant life insurance quotes for £100,000 for a Smoker

Below we have listed the best quotes for £100,000 relevant life insurance for smokers aged between 20 and 60 (taking them up to the age of 65). Again, we have assumed good health, a clean family history and no dangerous hobbies or pastimes.

Age Insurer Cost
20 Aviva £6.99
25 Aviva £9.24
30 Aviva £10.52
35 Aviva £14.60
40 Aviva £19.41
45 Aviva £25.75
50 LV= £35.14
55 Aviva £45.29
60 Aviva £58.39

TOP TIP: If any of your employees currently have life insurance and have given up smoking and have not had a cigarette for more than a year it is likely that they can save money on their life insurance. Check out our article '5 ways to slash your life insurance premiums'.

The cheapest and best relevant life insurance quotes for £250,000 for a Non Smoker

Below we have listed the best quotes for £250,000 relevant life insurance for non-smokers aged between 20 and 60 (taking them up to the age of 65). There is no set rule as to how much life insurance you should offer your employees, but most group schemes offer between 4 and 10 times salary, so we thought it useful to provide quotes up to £250,000. Again, the quotes below assume good health, a clean family history and no dangerous hobbies or pastimes.

Age Insurer Cost
20 Aviva £8.21
25 Aviva £9.25
30 Zurich £12.41
35 AIG £15.09
40 AEGON £19.44
45 Aviva £24.93
50 L&G £33.02
55 AEGON £45.00
60 Aviva £53.52

The cheapest and best relevant life insurance quotes for £250,000 for a Smoker

Below we have listed the best quotes for £250,000 relevant life insurance for smokers aged between 20 and 60 (taking them up to the age of 65). Again, we have assumed good health, a clean family history and no dangerous hobbies or pastimes.

Age Insurer Cost
20 Aviva £13.17
25 Aviva £15.65
30 Zurich £22.10
35 AIG £29.11
40 AEGON £41.08
45 Aviva £55.55
50 AEGON £80.64
55 AEGON £113.38
60 Aviva £126.34

What is the cheapest way to buy relevant life insurance?

The best way to buy relevant life insurance is to speak to an independent specialist who will be able to give you tailored quotes for each employee. A relevant life insurance specialist has access to the whole of the market, whereas online calculators may only give you quotes from a small number of relevant life insurance providers.

A relevant life insurance specialist will also be able to advise you on the level of cover you should be taking out and even take care of the application and administration process for you. We have personally vetted the services of a relevant life insurance specialist, having used them to set up our own business protection insurance here at Money To The Masses and are extremely happy with the service that they provide. There is no fee as they get paid a commission by the insurance company should you decide to take out a plan and once you have received a quote, there is no absolutely no obligation to proceed. Just fill out the relevant life quotation form and they will be in touch at a time that suits you.

 

Looking for a financial adviser near you?

Do you need financial advice? An independent financial adviser can show you how to make the most
of your money. Find your nearest qualified and regulated adviser using this VouchedFor search tool.