Ndubuisi 'Andy' EgwimMoney Coach for Medics|Ex-NHS GP|21+ Yrs Investor| Founder, MoneyWiseDoctor.com|Helping Medics Avoid Big Money Mistakes

Paying Life Insurance From Your Own Pocket? There Is a Smarter Way for UK Doctors

19 Aug 2026 · 1 min

Watch on YouTube

1:20

In this advisory segment, Ndubuisi 'Andy' Egwim warns UK doctors and other company directors that paying personal life insurance premiums out of already‑taxed personal income is usually tax‑inefficient. He explains that the money may have already been subject to corporation tax and personal extraction taxes before the premium is paid, reducing the net benefit of the cover. Andy introduces the concept of a "relevant life" policy – an employer‑arranged life insurance arrangement, often placed in a trust, that can provide similar protection while being more tax‑advantageous for directors and employees. He stresses that such policies are not the same as ordinary personal life insurance and must be set up correctly from the start. Andy cautions against buying protection based on online adverts that claim tax deductibility, urging viewers to consult a regulated protection adviser who specializes in director‑relevant‑life arrangements. Finally, he clarifies that relevant life cover differs from income protection, critical illness cover, shareholder protection, and key‑person insurance, each of which addresses distinct risks.

Chapters

The mistake is never checking whether the way you fund your protection still suits your current business structure to be tax-efficient. Number 3, paying personal life insurance from taxed income without reviewing alternatives. So, many company directors pay their personal life insurance premiums from their own bank accounts. That means the money may have already passed through corporation tax and then personal extraction taxes before the premium is paid. Think about a relevant life policy. It's a type of employer-arranged life cover that may be suitable for some Directors and employees. It's not the same as an ordinary personal life insurance policy, but it does do about the same thing. It's commonly written under an appropriate trust if you specify, and it should be arranged correctly from the beginning. Now, this is not something to buy from a random online advert because somebody called it tax deductible. You want to speak to a regulated protection advisor specialist who understands company directors and relevant life arrangements. Mistake is not necessarily having personal life insurance. The mistake is never checking whether The way you fund your protection still suits your current business structure to be tax-efficient. And remember that relevant life cover is not the same as income protection, critical illness cover, shareholder protection, or key person insurance. These are all a little bit different. Each one solves a different problem.