This option comes in when you take out your own policy and place it into a business trust. You may need to equalise premiums if you and your fellow shareholders each pay the premiums yourselves.
HMRC might see unequal premiums as a ‘gift’ or ‘transfer of wealth’, from the shareholders paying more to those paying less. (This can occur due to personal health factors, which may result in higher premiums.)
If HMRC decides there has been such a gift, there could be inheritance tax implications in the event of a claim. Premium equalisation prevents this and is often used for inheritance tax purposes.