Business Protection is vital to ensure the future survival of businesses, and forms an integral part of future planning. It is a way of helping to protect against possible financial losses in the event of the death or a specified critical illness of a business owner or key person, during the term of the policy. It also pays out on diagnosis of a terminal illness.
Business Protection can help ensure that your business survives during difficult circumstances.
Business Protection Products
- Key Person Protection – Protects your business against the financial effects of the loss of a key person or member of staff
- Business Loan Protection – Will pay off outstanding overdrafts, loans or debts insured against the loss of the guarantor
- Shareholder Protection – helps partners, directors and members buy a deceased persons share of the business, which may otherwise be be passed in to the deceased’s estate
Relevant Life Plan
Relevant Life plans are individual life cover policies. They’re designed to enable employers to offer tax efficient death-in-service benefits to their employees outside of a registered group life scheme. They are also used for high-earning employees who have substantial pension funds and want their death-in-service benefits to sit outside of their lifetime allowance.
Other tax advantages of Relevant Life plans:
- The payments made won’t form part of the employee’s annual pension allowance.
- The premiums aren’t normally subject to income tax because they’re not assessed as a benefit in kind.
- The premiums can be treated as an allowable expense for the employer in calculating their tax liability, as long as the local inspector of taxes is satisfied they qualify under the ‘wholly and exclusively’ rules.
- In most cases the benefits are paid free of inheritance tax because the policy is written in trust and the benefits are paid through that trust.
- The policy is owned by the business and the business pays the premiums. The life assured is usually a key person within that business. The policy is written in trust for the dependants of the life assured.