Compare Relevant Life Policy Providers
When it comes to safeguarding your business, selecting the right protection is crucial. Relevant life policies are a popular choice among business owners to provide comprehensive coverage for their employees. However, with various providers offering a range of benefits and terms, it can be challenging to decide which option is the best fit for your company. This guide is designed to help you compare relevant life policy providers, providing detailed tabs for each provider to make your decision-making process easier. Continue reading to determine which option is most suitable for your needs and ensure your business is well-protected.
Ancillary Benefits
Ancillary benefits are a form of secondary health insurance coverage that addresses various medical expenses incurred during an emergency. These expenses, such as ambulance rides, bandages, drugs, and other supplies, can be costly but are often covered by ancillary benefits. Ensuring your employees have access to these benefits can provide peace of mind and additional security.
Remuneration
Remuneration encompasses all forms of compensation received in relation to the distribution of insurance products. This includes revenue from commissions, profit share agreements, fees, and other economic or non-economic benefits. Understanding how remuneration impacts the cost and benefits of a relevant life policy is essential when comparing providers.
Relevant Life Policy Providers
Below are some of the leading relevant life policy providers. Click on each provider to learn more about their specific offerings:
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- Legal & General: Discover the benefits and coverage options provided by Legal & General.
- Aviva: Learn about Aviva’s life policy options and additional benefits.
- Royal London: Explore the coverage and terms offered by Royal London.
- Zurich: Find out more about Zurich’s flexible policy options and benefits.
- Vitality: Understand Vitality’s unique approach to life insurance with their healthy living program.
- Liverpool Victoria (LV): Get details on LV’s tax-efficient life cover options and member benefits.
This guide aims to simplify the process of comparing relevant life policy providers, enabling you to choose the best coverage for your business’s unique needs. Each link will take you to a detailed page about the individual providers, helping you make an informed decision.
The details and rates provided in this article are based on the most recent information available as of 10 June 2024. Please be aware that these figures may change over time. It is advisable to verify the latest information directly with the insurance provider before making any decisions.
This warning also applies to the information on the following pages:
Legal & General | Relevant Life Policy
Legal & General offers a comprehensive relevant life policy designed to provide significant coverage for employees, tailored to their age and remuneration. Below are the key details of the policy:
| Feature | Details |
|---|---|
| Minimum Cover | There is no minimum amount of coverage required. Driven by minimum premium. |
| Maximum Cover | Depends on the employee’s age and remuneration:
Remuneration consists of salary, bonuses, benefits, and dividends from shares in the employer’s or related company. |
| Type of Cover | The following types of cover are available:
|
| Minimum Term |
|
| Maximum Term | 50 years |
| Minimum Age | 18 |
| Maximum Age | 73 years old to buy a policy (policy must end by the client’s 75th birthday) |
| Premiums | Guaranteed (unless increasing cover is selected) Premiums payable monthly or annually by Direct Debit by the employer |
| Trusts | Policies must be placed into a Relevant Life Plan trust |
| Death in the First Year | If the life insured dies within the first year of holding the policy due to suicide, intentional and serious self-injury, or an event where the life insured took their own life, the policy will be cancelled |
| Accidental Death Benefit | Included |
| Changing Your Policy | Can increase cover on certain specified events without need for further medical evidence (eligibility criteria and restrictions apply) |
| Continuation Cover | Included |
| Additional Benefits | Access included (service provided by RedArc Assured Limited) RedArc offers ancillary benefits |
Aviva | Relevant Life Policy
Aviva offers a comprehensive relevant life policy designed to provide significant coverage for employees. Below are the key details of the policy:
| Feature | Details |
|---|---|
| Minimum Cover | There is no minimum amount of coverage required. Driven by minimum premium. |
| Maximum Cover | No maximum for life cover only £5,000,000 for increasing cover |
| Type of Cover | The following types of cover are available:
|
| Minimum Term | 1 year |
| Maximum Term | 50 years |
| Minimum Age | 18 |
| Maximum Age | 73 |
| Premiums | Guaranteed |
| Trusts | Policies must be placed into a Relevant Life Plan trust |
| Continuation Cover | Included |
| Additional Benefits | Protection promise |
Zurich | Relevant Life Policy
Zurich offers a comprehensive relevant life policy designed to provide significant coverage for employees. Below are the key details of the policy:
| Feature | Details |
|---|---|
| Minimum Cover | There is no minimum amount of coverage required. Driven by minimum premium. |
| Maximum Cover | Depends on the employee’s age and remuneration:
Remuneration consists of salary, bonuses, benefits, and dividends from shares in the employer’s or related company. |
| Type of Cover | The following types of cover are available:
|
| Minimum Term | 1 year |
| Maximum Term | 50 years |
| Minimum Age | 16 |
| Maximum Age | 73 |
| Premiums | Minimum premium £5 a month or £50 a year Guaranteed |
| Trusts | The policy can only be issued into a Zurich Relevant Life Policy Trust, which can be done online through the application journey. The employee’s family or dependants can be beneficiaries. |
| Death In the First Year | The life assured dies as a result of suicide or a self-inflicted injury within 12 months of the start date or the date the cover is increased. |
| Changing Your Policy | Changes can be made to the cover on the policy after it starts to ensure it remains suitable for the employee if their circumstances change. Possible changes include:
Depending on the specific change requested, information about the life assured’s health and personal circumstances may be required to determine if the change can be made. Changes in your policy may impact your premium rates. |
| Additional Benefits | Clients can utilize the milestone benefit feature in their policy to enhance their sum assured. There will be no health questions required, but their premiums will be adjusted.
The maximum increase allowed for the client’s sum assured is the lesser of the original amount or £200,000. The benefit must be utilized within 90 days of the significant life event and is only available for clients aged 54 years and under. |
Royal London | Relevant Life Policy
Royal London offers a comprehensive relevant life policy designed to provide significant coverage for employees. Below are the key details of the policy:
| Feature | Details |
|---|---|
| Minimum Cover | Unlimited cover |
| Maximum Cover | Up to 30 times annual total remuneration for clients aged under 40 years Up to 25 times annual total remuneration for clients aged 40 to 49 years Up to 20 times annual total remuneration for clients aged 50 to 59 years Up to 15 times annual total remuneration for clients aged 60 years and over |
| Type of Cover | The following types of cover are available:
|
| Minimum Term | 1 year |
| Maximum Term | 57 years |
| Minimum Age | 18 |
| Maximum Age | 73 |
| Premiums | Guaranteed |
| Death In the First Year | They won’t pay out if a claim is for death and is the result of intentional self-inflicted injury within 12 months of the date the cover started |
| Changing Your Policy | Customers have the option to request changes to their plan with Royal London. It is possible to consider adding a new cover or adjusting an existing one. They are available to help at any time. We may need to request updated medical information from the individual in question.
We can discuss what needs to be addressed once you outline your desired changes to the plan. Adding a new cover or increasing an existing cover is not allowed if you or the person covered are no longer residents in the UK. Removing a cover may prevent you from adding it back on later if your circumstances have changed. |
| Continuation Cover | Additional benefit |
| Additional Benefits | This plan doesn’t entitle you to membership of The Royal London Mutual Insurance Society Limited |
Vitality | Relevant Life Policy
Vitality offers a comprehensive relevant life policy designed to provide significant coverage for employees. Below are the key details of the policy:
| Feature | Details |
|---|---|
| Minimum Cover | There is no minimum amount of coverage required. Driven by minimum premium. |
| Maximum Cover | The cover must end by your 75th birthday |
| Type of Cover | The following types of cover are available:
|
| Minimum Term | 1 year |
| Maximum Term | 50 years |
| Minimum Age | 16 |
| Maximum Age | 73 |
| Premiums | Guaranteed Plan premiums can be paid either monthly or annually, in advance. The payment frequency selected is displayed in your Plan Schedule. If you choose the monthly option, your plan premiums will be paid via direct debit. Premium payments for the annually selected plan can be made through direct debit, Electronic Fund Transfer (EFT), or Telegraphic Transfers (TT). |
| Changing Your Policy | The VitalityLife Relevant Life Policy is designed with flexibility in mind. After setting up a plan, you have the flexibility to adjust your cover by increasing, reducing, or changing the fixed term. You can also remove Vitality Optimizer or adjust the fixed term of your covers. Keep in mind that any changes to your cover will result in a change to your premium. The change in your premium may not correspond directly to the changes made to your cover. Changes to your premium may be based on the age of the person covered at the time the change is made. When adding or increasing covers, new medical evidence is typically required. |
| Additional Benefits | The healthy living program offers discounts and rewards throughout the duration of your membership. |
Liverpool Victoria (LV) | Relevant Life Policy
Liverpool Victoria (LV) offers a comprehensive relevant life policy designed to provide significant coverage for employees. Below are the key details of the policy:
| Feature | Details |
|---|---|
| Minimum Cover | There is no minimum amount of coverage required. Driven by minimum premium. |
| Maximum Cover | The cover must end by your 75th birthday |
| Type of Cover | The following types of cover are available:
|
| Minimum Term | 5 years |
| Maximum Term | 50 years |
| Minimum Age | 17 |
| Maximum Age | 69 |
| Premiums | Guaranteed The premiums are paid for by the employer and unlike group schemes, usually treated by HM Revenue & Customs as a business expense. |
| Death In the First Year | The company will not pay a claim if the insured dies as a result of intentionally taking their own life within the first 12 months of the policy. |
| Changing Your Policy | Once the plan has been issued, changes will not be allowed by the client. |
| Continuation Cover | Additional benefit |
| Additional Benefits | When purchasing this product, the policyholder(s) will automatically become members of Liverpool Victoria Financial Services Limited (LV=). LV= is a mutual company owned by its members, allowing them to have a say in how the company is operated. Our members have access to various LV= benefits. For more information on the full range of benefits and any applicable conditions, please visit LV.com/benefits. The life insured is not eligible for membership and will not have access to the full range of LV= benefits. LV= benefits are subject to change and are not contractual. |
How to Compare Relevant Life Policy Providers in Practice
Once you have shortlisted providers, the differences that matter are rarely the headline product name. They sit in the underwriting approach, the trust wording, and how the policy behaves if the employee leaves the business. Working through these four areas will tell you far more than a side-by-side feature grid.
Underwriting route and how quickly cover starts
Some providers will accept a straightforward application on the answers given online, while others refer routinely to a GP report or a nurse screening once age, build or a declared condition crosses their threshold. A GP report can add several weeks, and the business is not on risk for the full sum assured until the policy is formally accepted. If cover is being put in place ahead of a specific event — a new shareholder joining, or a lender requiring protection — ask the provider up front what their current turnaround is on medical evidence rather than assuming.
Trust wording is part of the product, not an add-on
A relevant life policy only achieves its intended tax treatment if it is written into a suitable discretionary trust from the outset. Each provider supplies its own trust deed, and they differ in how beneficiaries are defined, whether the deed can be varied later, and how the trustees are appointed. Signing the trust at the same time as the application avoids the common problem of a policy in force with no trust behind it, which is the single most frequent administrative error we see on these plans.
Continuation options when the employee leaves
Because the policy is owned by the employer, it ends when the employment relationship ends unless there is a continuation option. Where a provider offers one, it usually allows the individual to take over an equivalent personal policy without further medical underwriting, provided it is exercised within a defined window after leaving. For a director in a small company this can be the most valuable feature on the whole contract, and it varies materially between insurers.
Ancillary benefits and how they are actually delivered
Most providers now bundle a support service — second medical opinion, bereavement counselling, or employee assistance. These are generally non-contractual, can be withdrawn, and in some cases are available to the employee but not their family. If a particular benefit is influencing your choice, check in the provider’s own literature whether it is contractual and who exactly can use it.
Getting it set up correctly
Relevant life cover sits at the intersection of protection advice and company tax treatment, so the arrangement should be reviewed alongside your accountant. Our advisers are independent and FCA-regulated, and can talk it through with you on a no-obligation basis.