Vitality Relevant Life Cover Review

Relevant Life Cover offers a tax-efficient way for businesses to protect their staff and their families. Vitality’s Relevant Life Cover stands out in the market thanks to its combination of comprehensive life protection with unique wellness benefits that encourage a healthier lifestyle.

Whether you’re a business owner looking for a tax-efficient way to offer life insurance or a director seeking personal cover through your company, we’re here to help you determine if Vitality’s policy is the right fit for your needs. You can also find Relevant Life for Company Directors and Relevant Life for Contractors that protects the key members of your team.

Let’s explore how Vitality’s Relevant Life Cover works, its key features, tax advantages, and how it compares to other policies.

The History of Vitality

​Vitality, a prominent health and life insurance provider in the UK, has a commitment to promoting healthier lifestyles. The company’s journey began as PruProtect in 2007 as a joint venture between Prudential PLC, a long-standing UK insurer and Discovery Limited, a leading South African-based financial services group.

PruProtect rebranded as Vitality Life in 2014 after Discovery became the sole owner. Vitality now has an estimated one million customers across the UK and employs approximately 1,400 people.

Benefits of Vitality Relevant Life Cover

With Vitality Relevant Life Cover, the families of your insured employees are protected should the key person pass away. The employee’s loved ones receive a lump sum, which can be used to cover expenses such as mortgage or rent and childcare. Relevant Life Insurance from Vitality is also used to cover terminal illness and the pay out can be used to cover medical expenses and care. Additional cover options include Serious Illness Cover for Children and LifestyleCare Cover for degenerative illnesses.

There are various Relevant Life Insurance tax benefits to Vitality Relevant Life Cover. This type of insurance is considered a tax-deductible business expense and neither the company nor the employee needs to make National Insurance contributions on it. Relevant Life insurance also won’t impact your employees’ personal income tax or lifetime pension allowance and they won’t have to pay Inheritance Tax on it. This insurance can be used as a top-up to a death-in-service benefit.

Relevant Life Insurance from Vitality encourages the insured employees to make healthy choices and offers rewards as incentives. Everyone starts at Bronze and can increase to Silver, Gold and Platinum levels if they take steps to improve their health; the rewards and discounts increase with each level.

Vitality Relevant Life Policy Cover

Vitality Relevant Life Cover is an insurance policy that pays out a lump sum to the beneficiaries of an insured employee should they pass away. When you take out the policy, the insured person also becomes member of the healthy living programme, which rewards members for making healthy choices. If you have chosen Vitality Optimiser, you can control the future premiums without changing the cover.

Anyone who’s a UK resident (excluding the Channel Islands and the Isle of Man) and aged between 16 and 70 can be insured by the Relevant Life Insurance at Vitality. The minimum time someone can be insured is a year and the cover must end before they reach their 75^th birthday.

Terminal Illness

With Vitality Relevant Life Insurance, the policy pays out a lump sum to beneficiaries if the insured person is diagnosed with a terminal illness, and their life expectancy is less than 12 months. However, it only applies if the person covered is still employed by the company.

Level or Increasing Cover

You can choose between level or increasing cover for the Vitality Relevant Life Insurance. Level cover means that the payout amount stays fixed throughout the policy term and the premiums also remain constant unless you make changes to the policy. Over time, inflation may reduce the real value of the payout.

With increasing cover, the payout amount rises over time and is usually linked to inflation. Premiums also increase accordingly. Increasing cover is generally more expensive than level cover, but helps ensure the payout retains its value in real terms and protects against inflation.

Should I take out Relevant Life Cover with Vitality?

There are several things to consider when debating Relevant Life Insurance vs Life Insurance. Vitality Relevant Life Insurance is ideal for small and medium companies that want a tax-efficient way to provide life cover to employees. The premiums are typically considered a tax-deductible business expense and the benefits are usually free from Income Tax, National Insurance, and Inheritance Tax when written in trust.

Vitality is an award-winning, well-established insurer in the UK and offers various life insurance products to suit various types of companies and employees. The rewards scheme has several levels that offer different rewards and discounts when insured members make healthy choices, such as increasing their step count or the decision to stop smoking.

You can tailor the plan to add additional cover, such as Business Serious Illness Cover, which pays out in the event that the insured person becomes seriously ill and can’t work as a result. The plan can also be tailored with Disability Cover for Business, which covers 49 disabling conditions and Waiver of Premium, where your premiums are waivered if one or more of the insured employees can’t work due to illness or injury.

Why get Business Protection from an Insurance Broker?

Getting Business Protection from an insurance broker instead of going directly to a provider has various advantages. Here at My Keyman Insurance, we can compare policies from multiple insurers to find the best value. We have years of experience and can assess your business needs to recommend you tailored coverage.

We can save you valuable time by simplifying the application process and giving you’re a bespoke quote that suits your unique business needs. Contact us today for more information and to find out how My Keyman Insurance can help with your insurance needs.