LV= uses cookies to give you the best experience online and to provide anonymised, aggregated site usage data. You can find out what cookies we use and how you can disable them in our Cookie Policy. By continuing to use our website, you agree to our use of cookies in accordance with our cookie policy unless you have disabled them.

skip to main content

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

Relevant Life Cover

Relevant Life Cover options

Relevant Life Cover is a tax efficient way for small businesses to provide stand-alone, single life, death in service cover.

Placed into trust, it will pay a tax-free lump sum to the beneficiaries if the employee covered was to die or be diagnosed with a terminal illness whilst employed during the term of the plan.

Level or inflation-linked cover

You can recommend the amount of cover, the term, and whether the cover is level or inflation-linked.

  • Level means the amount of cover remains the same from the start date until the end date of the policy.
  • Inflation-linked means the amount of cover goes up each year in line with inflation. The premium goes up by inflation multiplied by 1.5.

Guaranteed increase options

The employer can increase cover for their employee (without any additional underwriting) within certain limits if they:

  • Increase their mortgage as a result of moving house or home improvement
  • Get married or enter a civil partnership
  • Have or legally adopt a child
  • Get divorced
  • Have an increase in salary

What happens if the person insured no longer works for the company?

There are a number of options. We can either cancel their cover straight away and the trust will end.

If the individual wants to continue their cover, we can give them a new own life policy on the same terms as the existing contract, without the need for further underwriting. But, the individual will need to pay all outstanding premiums from the date the existing plan ended. The new policy will not be set up as Relevant Life Cover, and will not offer the same tax advantages.

Alternatively, if the individual’s new employer wishes to continue their cover on their behalf, we can issue a new life of another policy on their life, on the same terms as the existing policy, without the need for further underwriting. The new employer will need to set up a Relevant Life Cover trust and will be responsible for paying all future premiums from the date the existing plan ends. The new policy will qualify as Relevant Life Cover. If the individual wants to do this, they’ll need to let us know within 90 days of leaving employment.

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 will record and/or monitor calls for training and audit purposes.

options list icon

Business Protection options

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

More about our Business Protection options

Calculator icon

Calculators and tools

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

Our Business Protection calculators

Assistance icon

LV= Business Care

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

LV= Business Care

Team icon

Business Protection support team

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

More about our business support team

Connect with us

Vimeo logoLinkedIn company logoTwitter icon showing a bluebird

LV=, County Gates, Bournemouth, BH1 2NF, UK