Legal & General is launching a new Relevant Life Plan.

A Relevant Life Plan is a term assurance plan available to employers to provide an individual Death in Service benefit for an employee. It is designed to pay a lump sum if the person covered dies or is diagnosed with a terminal illness during the term.

The protection provider claims it can be a cost effective and tax efficient way for employers to provide death in service benefits for their employees, where the number of employees is too small to be eligible for a group scheme. It is also aimed at high income earning employees or directors who don’t want the potential policy benefits to count towards their lifetime allowance.

The Legal & General Relevant Life Plan has been reviewed and approved by William Massey QC, a senior barrister.

Alison Manning, head of product development at Legal & General, said: “The launch of Relevant Life Plan 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, said: “I am delighted that this product is now available. It 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.”