If I understand correctly, you have the relay coil connected between 12V and the switch (is it a 12V relay?). You have an LED w/ a 1k resistor connected in parallel to the coil, from 12V to the switch. The switch will simultaneously connect the LED and relay coil to ground.
This will work okay to turn them on, but when you turn them off, interrupting the current flowing through the relay coil will create a LARGE voltage (the inductance of the coil tries to keep the current flowing). If there is nothing in the circuit to limit this voltage, a large (+) voltage will appear at the coil negative terminal. This large voltage will reverse bias the LED, which could potentially destroy it.
It is common practice to put a signal diode (i.e. 1N4448) in parallel with the relay coil to suppress the back EMF generated when turning off the relay.
If this diode is in place, then there is nothing wrong (that I can tell) with having the LED in parallel with the relay.


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