Replacing John’s benefits
John is now looking to try and replace these benefits in the private market himself as he has a large mortgage and other expenses he’d have trouble meeting if he was unable to work for any longer than six months. As John’s wife looks after their 10 year old son the family is solely reliant in his income.
John’s Income Protection
John was looking at various personal income protection plans on the Drewberry website but after speaking to his Drewberry adviser, Jeremy made him aware that he was eligible for an Executive Income Protection plan that can be owned and paid for by his business. This worked out to be a more cost effective method of taking out cover.
Protecting John’s partners income
For tax reasons John has his wife as a director of the company and she also receives a salary and dividends. In order to gain enough cover for their monthly outgoings Jeremy ensured they went with an insurer that would let them cover a proportion of his wife’s earnings under John’s policy, which some insurers allow as John is the only revenue generator in the firm.
Before completing the application over the telephone, Jeremy called the underwriters at the most competitive insurer to check if they would be happy to offer standard terms and premiums even though John takes medication for high blood pressure and needs to travel overseas for business about once a quarter, which they would.
John’s Life Insurance
Tax efficient life cover
As John owns his own company, Jeremy recommended a Relevant Life Insurance policy that can also be owned and paid for by his business. This is a specialist plan that has been approved by HMRC where the premiums are fully tax deductible and any payout from the policy would be paid to his family tax-free through a relevant life insurance trust.
Thus, John has been able to use his company to gain the most cost-effective cover for both his income and life. If you would like to discuss these specialist policies for yourself please feel free to call us on 0208 432 7333 to find out more.
If you would like to discuss your specific situation please call us on 0208 432 7333 to see if we can help.