Russell Conwell, in his famous book Acres of Diamonds, describes the story of a farmer who sells up everything he owns to ‘go mine for Diamonds’ only to discover later, having spent every penny he had without success, that an enormous diamond deposit had been found on the land that he had sold!

Financial planning for business owners

Financial planning can seem quite complex, but there are some simple and effective steps that business owners and company directors can take to save money and reduce personal risk.

One of these often overlooked little gems is the Relevant Life Plan. In straightforward terms, it enables a company to pay for a life insurance policy for an employee.

For a Company Director paying for their own Life Insurance it means that they save the cost of the premium that they pay from their own taxed earnings. The cost of the plan to the company is not treated as a benefit in kind for the employee and the proceeds of the plan, should the individual die, are paid to the beneficiaries.

Secondly the cost of the premium is a legitimate business expense which means that there is a proportionate saving in Corporation Tax as well.

Overall the cost savings are typically between 30-50% which is significant at a time when saving money is pretty high up the list of business priorities. Don’t ignore this little diamond when considering your own financial plans.


As with all financial products professional advice should be sought from a financial adviser before taking key decisions about Relevant Life Plans and other forms of protection. Given the significant advantages that Relevant Life Plans provide there are some rules about who can benefit.

Get in touch to discuss your current protection provision and the options available to you.

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