Relevant life insurance is an insurance policy that a business can take out to provide life insurance for an individual employee. It’s an alternative way for employers to provide death-in-service benefits for their employees outside of a registered group life scheme.
Relevant life insurance is applied for and paid for by the business. It is written into trust so it pays out a lump sum to the employee or their beneficiaries if they die or are diagnosed with a terminal illness while employed during the policy term. It complies with relevant life insurance legislation that makes it tax-efficient for the employer and employee; as a consequence it provides pure life insurance only, and no other financial benefits.
|Min/max age at entry||17-71|
|Max age at expiry||74|
|Minimum sum assured||£10,000|
|Maximum sum assured||Maximum is linked to life assured’s salary. There is no statutory limit on the level of cover that can be provided so AIG have set its limits as: 30 x salary* for ages 17-39, 25x salary* for ages 40-49, 20 x salary* for ages 50-59, 15 x salary* for ages 60-71 *this includes salary, bonus, plus any taxable benefit in kind.|
|Cover variant available||Level. Cover remains level throughout the term unless the indexation option is taken up. Increasing. The sum assured will increase in line with the Retail Price Index (RPI) up to 10% every year and premiums will also increase each year.|
|Additional features||Guaranteed Insurability Options; It allows to increase the amount of cover by up to 50% of the original sum assured (up to a maximum of £75,000) without any further medical underwriting if the person covered: • gets a pay rise. • gets married or enters a civil partnership or • has (or adopts) a child or • increases their mortgage amount or term|
Your client can:
For a full explanation of AIG Relevant Life Insurance please see our Relevant Life Insurance Cover Details.