Our partner, LifeSearch, will explore and compare personalised quotes from leading and specialist insurers
Business life insurance helps protect your business financially if a business owner, partner, or key employee dies or becomes seriously ill. A policy can provide a lump sum to help repay debts, replace lost income, support share buyouts, or help your business stay afloat.
💡 Top tip: Business life insurance can also offer valuable tax efficiencies and premiums may even be claimed as a business expense
Yes. We tailor policies based on your business structure, whether you're a sole trader, partnership, limited company or Limited Liability Partnership (LLP).
Prices for £200,000 life insurance policy for a 50-year-old non-smoker:
Term Length | Minimum Monthly Cost |
|---|---|
10 years | £20.90 |
20 years | £32.21 |
30 years | £45.71 |
Speak to a LifeSearch adviser for a comprehensive review of your business protection needs. They'll work with you to understand what matters most to you and your business, and help reduce the risks linked to death or long-term illness.
Your adviser will do a full review of your needs and talk you through the risks, options, and cover types that could suit you best.
Once you’re happy with the recommendation, your adviser will set everything up for you – from choosing the right insurer to putting the policy in place.
If a key person (owner, manager, revenue generator) dies, or suffers a serious illness, this cover pays a lump sum or a monthly income to the business to:
Help plug profit gaps
Cover recruitment or training costs
Repay debts or stabilise operations
Often used to protect profit and loss (P&L) and keep the business running after losing a key individual.
This ensures that if someone key to the business dies or becomes seriously ill, business loans can still be repaid. It can cover a wide range of borrowing, such as unsecured loans, investor loans, buy-in loans, asset finance, hire purchase, or even credit cards.
Maintains your credit reputation
Supports long-term financial stability
This is a tax-efficient policy a business can take out to provide life insurance for an individual, as long as there is an employer-employee relationship. This includes directors and shareholders.
Pays out to the employee’s family (not the business)
Premiums are usually tax-deductible
Doesn’t count towards the individual’s pension allowance
💡 Commonly chosen by small companies and directors. Cover can range from 15x to 30x salary
Includes value-added benefits from providers like:
Scottish Widows’ RedArc: Free access to nurses and health services
Vitality: Lifestyle perks like discounted smartwatches and wellness rewards
John pays £100 each month for life insurance.
If he pays personally, the real cost to his business is about £129.
If his company pays through a Relevant Life Policy, the cost is only £81.
That’s a saving of £48 every month (37%).
John pays £100 each month for life insurance.
If he pays personally, the real cost to his business is about £161.
If his company pays through a Relevant Life Policy, the cost is still £81.
That’s a saving of £80 every month (50%).
If a shareholder or equity partner dies or become critically ill, this protection provides the capital needed to deal with the business interest of the deceased. Often this will involve the remaining business owners buying back the shares/equity from the estate of the deceased.
Helps retain control of the business
Avoids external ownership by heirs or third parties
Ideal for partnerships and LLP'S or limited companies with multiple shareholders
Executives and shareholders are central to business stability – this ensures continuity.
Pays a regular monthly income to cover salary, NI, and pension costs for an employee (or director) unable to work due to illness/injury.
Protects the employee’s lifestyle
Maintains pension contributions
Business pays the premiums
Business protection is often undervalued or underrepresented in the insurance market, but it can play a vital role in helping a business remain stable during difficult times. Whether it's to cover business debt, protect against the loss of a key person, or support a smooth transfer of ownership, we can help you put provisions in place to ensure your business is not impacted in the event of someone passing away or becoming critically ill. The right policy can give you and your business peace of mind when it matters most
LifeSearch business protection specialist
The level and type of cover will affect the cost of your business life insurance. The higher the cover limit, the more you'll pay.
Businesses in industries or professions that are considered higher risk may have to pay more. For example, those who work in construction, the armed forces, or the emergency services may face higher premiums.
Larger businesses with more employees are usually considered riskier and charged higher premiums.
Businesses with a history of frequent claims are typically charged more.
A policy's excess is the amount you pay each time you make a claim. Lower excesses result in higher premiums.
Each person will need to be medically underwritten, which will consider factors like age, health, and lifestyle.
Unlike some of our competitors, MoneySuperMarket is not owned by an insurance company. So we can offer the best value, with savings delivered straight to you.
By combining independence with our excellent technology, we can negotiate the best prices and the best value on products and services.
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If you’re not sure what life insurance cover you need or have questions that we haven’t answered in our life insurance guides, there is help for you. We have partnered up with LifeSearch to provide our customers with life insurance guidance and advice to help them find the right cover.
It’s free of charge. You can get in touch by calling 0800 197 3178.
Their opening hours are:
Monday to Friday: 8am – 8pm
Saturday: 9am-2pm
Sunday: 10am – 3.30pm
he cost of business life insurance can vary depending on the type of cover you choose, the people you want to protect and how much financial protection you need.
We’ll do the hard work for you by explaining your options, what’s included (and what’s not), and how much it all costs. With access to top UK insurers, we can find the right setup for your business.
Yes, there can be. In some cases, claim payouts can be arranged to be free from tax, and the premiums you pay might be tax-deductible too. This depends on the type of policy and your business structure.
At LifeSearch, we’ll guide you through the options, explain everything clearly, and help set up your cover in the most tax-efficient way.
Yes, business life insurance can protect against death, critical illness, and long-term sickness. The level and type of cover available will depend on your business and what you need it to do.
If you run a limited company, yes - the business can pay for your life insurance. This can be set up in a tax-efficient way, depending on the type of policy. If you're self-employed or in a partnership, you’ll usually need to take out the policy in your own name and pay for it personally, although certain business-related cover might still count as a deductible expense.
Yes, freelancers and self-employed individuals can take out business life insurance. In many cases, the cost can be claimed as a business expense.
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No, at this time life insurance is not an eligible product for unlocking our SuperSaveClub rewards. It is also not included in our Price Promise.
Reviewed on 25 Dec 2025 by
