LV= has launched a life cover product that allows employers to set it up on behalf of employees or company directors in a tax-efficient manner.
LV='s Relevant Life Cover is based on LV='s standard Flexible Protection Plan (FPP) Term product, which includes terminal illness cover and guaranteed insurability options.
It has the same flexible application options, including online, tele-interview or paper, and high financial underwriting limits.
However the cover must end before the insured reaches 75, and the policy can only provide life and terminal illness cover, and must be written into trust from outset.
LV= offers a continuation option which means that if the insured leaves employment the policy will be cancelled, but if they still require cover it can be re-issued as a normal life protection policy with the insured as the policy owner instead.
If the insured moves to a new employer a new Relevant Life Cover policy can be set up, and taken over by the new employer.
Employees that are insured under a Relevant Life Cover policy automatically qualify for the LV= Executive Assistance Plan which offers unlimited access to a telephone counseling service, a legal issue helpline and a confidential health and wellbeing advice line. These benefits are unique to the LV= product.
LV= head of protection Mark Jones said: "This product will help smaller businesses that do not offer a group life scheme provide their employees with cover in a flexible and cost-effective way, as the premiums are considered to be an allowable business expense and as the policy is written into trust from outset the benefits are usually paid free from inheritance tax.
"It is designed to help employers attract and retain the best people within their business by offering their employees valuable life protection at a reduced cost to the business. The continuation option means that the employee can feel confident that they are able to remain protected even if they change employer.
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