This a common question when it comes to looking into relevant life policies and unfortunately, in short, the answer is no.
A new contract must be established by the employer with the appropriate trust documentation.
What happens to my relevant life policy if I leave my employers service?
Most providers allow the policy to be assigned to the individual on leaving an employers service.
This is vital if the insured’s health has deteriorated to the extent that cover would be very expensive, or worse case, the person is uninsurable.
However, beware! Some providers will only allow the policy to be assigned to the individual if the company agrees to completely relinquish being the trustees and so if a fall out occurs with your company then assignment will not happen.
Some providers have provisions in place to navigate this situation and so you should seek independent financial advice before proceeding with any particular provider.
More on relevant life policies…
