Legal & General has launched a new relevant life plan to enable employers to provide an individual death in service benefit for an employee.
The provider originally announced its intention to do so at the COVER Health and Protection Forum but has only now revealed full details.
It is designed to pay a lump sum if the person covered dies or is diagnosed with a terminal illness during the term and can be a cost effective and tax efficient way for employers to provide death in service benefits for their employees, where business is too small for a group scheme.
L&G added that it can also be utilised by high income earning employees or directors who don't want the potential policy benefits to count towards their lifetime allowance.
The plan has been reviewed and approved by senior barrister William Massey QC.
Alison Manning, head of product development at Legal & General, said: "The launch compliments our existing business protection proposition and group life offering.
"In the current economic climate this is a tax efficient benefit that employers of small businesses can provide for their employees, providing them with peace of mind should the worst happen."
Clare Harrop, head of specialist protection at Legal & General, added: "The product gives advisers another opportunity to discuss protection in the corporate sector alongside other business protection needs.
"With the protection gap still so high this plan can help employers provide protection cover for their employees and ensure they are doing it in the most tax efficient way possible."
