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Is Relevant Life Cover right for your client? Find out with our easy to use calculator

Myles Rix talks about how important Business Protection is to LV=

Relevant Life Cover

A quick guide to Relevant Life Cover

Relevant Life Cover is a tax-efficient life insurance policy, allowing companies to offer a death-in-service benefit to its employees (including salaried directors). It's set up by the company and pays out a tax-free, lump sum on the death (or diagnosis of a terminal illness) of the person insured. The proceeds go directly to the employee's family or financial dependants.

Cover features

  • Counts as a tax-deductible business expense
  • The premiums are paid monthly
  • Guaranteed premiums
  • Benefits usually free from inheritance tax
  • Maximum amount of cover available is £10million

Important information

  • Must be written into a discretionary trust
  • There is no cash value at any time
  • If your client stops paying their premiums, the related cover may end
  • After the plan has been issued, your clients won't be able to change it
  • We won't pay a claim if the person covered dies as a result of intentionally taking their own life within the first 12 months of the policy starting

Who Relevant Life Cover might benefit

  • Businesses too small for a group life scheme
  • High-earning employees who might exceed their personal pension lifetime allowance. Registered group life schemes are included in pension legislation, meaning any paid claim is included in the employee's pension fund. Claims paid under Relevant Life Cover don't count towards a person's lifetime allowance
  • Members of group life schemes who want to top up their benefits (some group life schemes can be restrictive)
  • Eligibility

The person covered must be a UK resident and an employee of a UK business and cover must stop by age 75.

Relevant Life Cover is not available to sole traders or partnership companies and must be written in a discretionary trust.

0800 032 3962

TextDirect: first dial 18001


Business Protection Specialist Team

Option 1 – New and current applications

Option 2 – Underwriting

Option 3 - New agency set up and login queries

Option 4 - Business Protection sales team and quotes

Options 1-3, 8.30am - 6.30pm Mon - Fri

Option 4, 9:00am - 5:00pm Mon - Fri

We may record and/or monitor calls for training and audit purposes.

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Business Protection options

Find out more about the type of businesses we cover and the policies available.

More about our Business Protection options

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Calculators and tools

See all our business protection calculators available to simplify your client conversations.

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LV= Business Care

Our Relevant Life Cover includes valuable telephone support for your clients and their employees.

LV= Business Care

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Business Protection support team

Our team will make sure that all your Business Protection applications are dealt with quickly and efficiently.

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FOR UK FINANCIAL ADVISERS ONLY
LV=, County Gates, Bournemouth, BH1 2NF, UK