Aegon UK has enhanced its business protection proposition by improving its Relevant Life policy.
The three areas where Aegon has enhanced its Relevant Life policy are by adding a new portability feature, improving the trust deed and making the policy available for application online.
Relevant life policies are similar to other types of life cover but aim to provide tax efficient death in service benefits. These benefits are provided by an employer for an employee. As they are not classed as a 'benefit in kind' no tax is payable on the premiums.
Aegon UK said the added flexibility of being portable if the life assured (employee) changes employer means that the new employer has the option to continue with the arrangement and benefit from the tax advantages of the policy, without the employee having to go through the underwriting process again.
This is particularly advantageous if the employee is significantly older or has had any health issues since taking out the policy originally, the insurer added.
Aegon has also improved its trust deed by reducing the size and improving the layout, making it clearer for both the advisers and customers.
These developments follow the conclusion of a series of business protection workshops held around the country with advisers.
John Wilkinson, protection director at Aegon UK said: "With the portability feature, customers can take their life policy with them if they move company. Should the new employer not want to take the policy on, it can simply be converted to an ordinary life policy, with no direct link to the employer.
"They are suitable for small businesses through to employers with group life schemes who have members looking to top up their benefits."
