FOR ADVISERS ONLY

A snapshot of our Life Cover

Many businesses rely on high value employees that can't be easily replaced. Adding Life Cover for a key person or people to a business protection plan can help the business cope with the loss of a key employee.

The flexibility of our Life Cover makes it easy to recommend. The cover can be amended should a change occur in the future, for example a key employee leaving or retiring, or the company taking out a loan to help with expansion plans. On this page you'll find full details of our life cover product.

Tailor-made Life Cover

We make it easy to customise our Life Cover. We offer increasing, decreasing or level cover

Client benefits - Life Cover

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  • Adapting to life's changes - we know life never stays the same for long. So in certain circumstances, cover can be increased without the need for medical evidence.
  • Free Cover - in many cases we can offer cover before your client's plan actually starts, from the moment we receive their completed application.
  • Personal support - our business menu plans also come with our Helping Hand support service, giving the business as well as the people covered, their partners and children access to a dedicated nurse. The service also gives your clients access to a career helpline that can help find candidates for temporary or permanent cover for a key person.
  • Claims settlement - our dedicated claims team aims to pay out claims quickly and efficiently.

Details of our Life Cover

Your clients can make a claim when the person covered under the business protection plan dies or meets our definition of a terminal illness. If their circumstances change during the life of their plan, they can update or rework their cover to better suit their needs.

  • Basis - single life
  • Premiums - guaranteed
  • Payouts - lump sum or income (except for a  plan with decreasing cover, where there's only a lump sum payment)
  • Amount of cover - income can be level, increasing or decreasing over the term of the plan
  • Term - minimum one year, maximum 72 years
  • Age when cover starts - minimum 18 attained, maximum 88 attained 
    79 attained for 5 year renewable
    69 attained for 10 year renewable 
  • Age when cover ends - maximum 89 attained
  • Amount - unlimited cover

To help protect against the effects of inflation,your clients can choose to increase the amount of cover over the term of their plan in one of two ways:

  • Fixed rate – at a chosen rate of interest (between 2% and 5%)
  • Index-linked rate – based on the change in the retail price index (between 2% and 10%)

Your clients can reduce the amount of cover over the term of their policy in the following way:

  • Mortgage or business loan repayment – Reduces in line with a repayment mortgage or business loan with a set interest rate (between 0% and 15%). If your client's mortgage interest rate changes, the amount we pay may not be enough to pay off their mortgage.

Your client's plan comes with Cover Increase Options which means they can increase their cover without giving us any medical information if there's:

  • An increase in the value of a key person.
  • An increase to their business mortgage or loan.
  • An increase in the value of a partner’s or shareholder's interest in the business.

However, if they want to increase the amount of their cover for any other reason, they may need to supply medical evidence.

We won't pay a claim if: 

  • The claim is for death and is the result of intentional self-inflicted injury within 12 months of the date the cover started,
  • The claim is for a terminal illness and the person covered doesn't meet the definition of terminal illness defined in our plan details; or
  • It's the result of an exclusion shown on the cover summary.

Terms and conditions

For full terms and conditions see our plan details.

Last updated: 02 Aug 2018

This website is intended for financial advisers only and shouldn't be relied upon by any other person. If you are not an adviser please visit royallondon.com.

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.