The loss of an employee to death is never easy for businesses but it is especially hard for the family. Relevant Life Cover is a tax-efficient life insurance policy which allows companies to offer a death-in-service benefit to its employees (including salaried directors). It’s set up by the company and pays out a tax-free lump sum on the death (or diagnosis of a terminal illness) of the person insured. The proceeds go directly to the employee’s family or financial dependants. Also, claims paid under Relevant Life Cover don’t count towards a person’s pension lifetime allowance.