LV= relevant life insurance

LV= offers Relevant Life Cover as part of its Flexible Protection Plan for employers who want to provide tax-efficient life cover for employees and salaried directors.

The policy is designed to pay a lump sum if the insured person dies during the policy term and includes terminal illness cover at no extra cost. Like all relevant life policies, it is normally written into a discretionary trust for the employee’s family or dependants.

Key features

LV=’s Relevant Life Cover includes a number of features aimed at employers looking for straightforward life cover for individual employees.

These include:

• Life cover with terminal illness benefit included as standard
• A choice between level or inflation-linked cover
• Guaranteed premiums throughout the policy term
• Guaranteed increase options following certain qualifying life events, subject to the policy conditions
• Continuation option, allowing the employer to issue a new policy on the same terms to the employee or their new employer if they leave the business, subject to the policy conditions
• Access to an online trust tool to set up the required discretionary trust

The exact cover available will depend on the policy selected and the outcome of underwriting.

Who is the policy intended for?

LV= states that Relevant Life Cover is intended for UK businesses that want to provide death-in-service benefits for PAYE employees, including salaried directors.

The insurer also makes clear that the policy is not intended for non-salaried directors of limited companies, equity members of LLPs or sole traders. It must be written into trust from the outset and normally requires financial advice because of the taxation and trust arrangements involved.

Applying for cover

Applications are assessed individually.

When calculating premiums and underwriting a policy, LV= will typically consider factors such as:

• age
• smoking status
• medical history
• occupation
• the amount of cover requested
• the policy term

The policy has a minimum term of five years and must end before the insured person reaches age 75.

Additional member benefits

As a mutual insurer, LV= includes a number of additional non-insurance benefits alongside Relevant Life Cover.

Depending on the policy and eligibility, these may include:

• LV= Business Care, providing business legal, tax and VAT support
• LV= Doctor Services, including virtual GP appointments and other health services
• membership of LV=, giving access to member benefits offered by the mutual

These services are separate from the insurance policy itself and may be changed or withdrawn in the future.

Points worth considering

Before selecting any relevant life provider, it is sensible to look beyond the monthly premium.

It is also worth comparing:

• the amount of cover available
• whether level or inflation-linked cover is more appropriate
• trust requirements
• additional policy features
• underwriting requirements
• the overall suitability of the policy

Different insurers assess applications differently, so LV= will not necessarily provide the most competitive quotation for every applicant.

Compare relevant life insurance quotes

Obtaining quotations from several insurers is usually the best way to compare the options available.

Our independent financial adviser partner, Broadbench Ltd (FCA No. 590288), can compare policies from a range of leading insurers and recommend suitable cover based on your circumstances.

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