Running a business can be exciting and rewarding, but it also comes with its share of challenges. Among them is the fact that the success of your company often depends on a few key people. If something unexpected happens to them, the impact can be far-reaching.

Business life insurance is there to protect what you’ve worked hard to build. If an owner, partner or essential team member dies or becomes seriously ill, it can provide the financial support needed to keep things running, and give the business breathing space to plan for the future.

Every business is different, which is why there’s no single policy that fits all. Business life insurance offers a choice of cover options to help secure your company’s future, protect your team, and give you peace of mind that your business can keep moving forward.

If you’re in a position to choose between personal life insurance and relevant person life insurance for yourself, both types will protect your family financially if you pass away. But which one is right for you?

Personal life insurance is something you arrange and fund out of your own pocket. But relevant life insurance is paid for by the business. It gives you similar protection but potentially in a more tax-efficient way. The policy is treated as a business expense, so your company can usually claim tax relief on the premiums - and you won’t have to declare it as a benefit in kind.

If you have a limited company, this can be a smart alternative to a personal policy. In fact, according to the accountancy firm Crunch, switching from personal life insurance to a relevant life policy could save business owners up to 52% on premiums.

There’s no one-size-fits-all price tag when it comes to business life insurance, as it depends on the type of cover you choose and who’s being insured. Each policy is tailored to your business and the individuals it protects.

As an example, with relevant person life insurance, each plan is priced based on the personal circumstances of each team member insured. Insurers will look at factors such as:

• How long the policy runs for (the term).

• The amount you want the policy to pay out.

• The employee’s age and overall health.

• Their occupation, particularly if they have roles in higher-risk sectors like construction.

• Whether they smoke, vape or take part in higher-risk activities such as diving.

Naturally, premiums for someone older with health issues will be higher than for a younger employee in good health.