Insurances

Insurance Types

mortgage protection

When should you consider mortgage protection insurance to secure your home?

What would happen to you if your personal circumstances deteriorated? Change happens regardless of how secure you currently feel about your job, your health, or your life in general.

Please contact one of our experts for additional information on viable options and your specific mortgage protection requirements.

family protection

What is covered by family protection insurance?

Family protection insurance is intended to safeguard you and your family from the financial effect of unexpected and potentially costly occurrences such as illness, accident, forced unemployment, and death.

There are several products available, each having a distinct purpose, ranging from private medical insurance to life insurance, income protection, and critical illness coverage.

This guide seeks to demystify the many forms of protection insurance available and assist you in selecting the best mix of coverage for your specific needs.

What is the purpose of family protection insurance?

If you were out of work for an extended period of time due to an accident or illness, or if you were made involuntarily redundant, you would still have costs to pay, such as rent or mortgage, gas, electricity, and food.

In an ideal world, everyone of us would have an emergency savings fund to carry us through any crises — many experts recommend having a rainy day fund of six to nine months' expenses in a readily accessible savings account. However, it is just not feasible for many of us, and although it may provide some breathing room if you become unwell, it will not cover you or your family for extended periods of time away from work.

You should also keep in mind that the state benefit safety net is increasingly insufficient to support your current lifestyle.

For additional information on potential options and your own life insurance requirements, please contact us.

life insurance

If you die, life insurance (also known as life assurance) can assist provide financial stability for those who rely on you.

Although money cannot replace a loved one, it can assist those who have been left behind in managing the financial storm. It may, for example, pay off the mortgage or offer an income to assist meet basic household expenses.

life insurance types

There are several sorts of life insurance, and the best one for you will depend on your specific circumstances. When you die, life insurance will pay out either a single lump amount (sum insured) or a recurring income.

Term Protection Insurance - This is the most basic form of life insurance. You specify how long you want to be covered for, for e.g., 25 years (the term), and the insurance pays out if you die within that time frame. You can also get term insurance as a couple, with the policy paying out only on the first death during the term. Depending on your needs, there are various different types of Insurance plans available.

Family Income Benefit Insurance - This is similar to Term Insurance in that it pays you a regular monthly income instead of a single pay out when you die. This sort of payment may be more appropriate if the primary goal of the insurance is to offer continuing financial support to dependents.

Whole of life insurance cover - gives out a lump sum when you die, whenever that is, as long as you continue to pay the premiums.

Specialist Life Insurance cover - There are particular life insurance policies available for those over the age of 50, as well as couples who may benefit from a joint insurance cover. Our skilled protection experts may also analyse the market and propose specialised protection for clients who have pre-existing diseases or health issues, such as diabetes.

This article (Life Insurance) is not designed to give advice, but rather to provide a broad understanding of the subject.

critical illness protection insurance

Critical Illness Insurance provides a tax-free lump sum payment upon the diagnosis of certain life-threatening or serious (but not fatal) illnesses such as heart attack, stroke, cancer, and major organ transplants.

This list, as well as the exclusions for making a claim, will vary depending on the insurer.

Critical Illness Insurance is frequently included as an optional extra to a Life Insurance policy, although it can also be purchased separately. Policies typically pay out just once, so they do not replace your normal income, but you may spend the money for medical treatment, your mortgage, or whatever else you choose.

Many people get Critical Illness Insurance after they make a substantial commitment, such as a mortgage, or when they establish a family. However, because we'd all prefer to have our financial commitments reduced in the event of a major sickness or accident, the coverage is vital for most of us at any time.

If you currently have Critical Illness Protection, you should tread cautiously before cancelling your current policy and purchasing a new one.

For example, if you've gotten any illnesses while purchasing the coverage, you may forfeit part of the advantages when replacing it. This is because the new insurance may not cover pre-existing medical issues.

This article (Critical Illness Protection Insurance) is not designed to give advice, but rather to provide a broad understanding of the subject.

income protection insurance

Income Protection Insurance provides a regular tax-free replacement income if you are unable to work due to illness, accident, or, with certain policies, unemployment.

It might assist you in meeting your mortgage and other living expenses until you are able to return to work.

Policies have a waiting time before they pay out, which begins when you are unable to work. The longer the duration, the lesser your premium. It's a good idea to find out what your employer would pay you and what state benefits could be available so you can select a suitable waiting time.

The premium you'll pay will vary according to your age, health, and work, as well as the amount of income you want to protect.

If you fall ill or are injured while working, an Income Protection insurance can assist safeguard you against potential income loss and expedite your return to work.

This article (Income Protection Insurance) is not designed to give advice, but rather to provide a broad understanding of the subject.

business protection

In business, being prepared for the unexpected is second nature. Good management leads to success, but if the unexpected happens, the financial stability of your company, and even your family, may be jeopardised. A key person's death or serious sickness might jeopardise all you've worked for.

Please contact one of our experts for additional information on relevant solutions and your specific Business Protection requirements.

key person insurance

Key person insurance is an essential type of commercial insurance. "Key person insurance" has no legal definition.

In general, it is an insurance policy purchased by a small or medium-sized business to protect it from probable financial losses resulting from the death or protracted incapacity of the business member indicated on the policy. The term of the policy does not extend beyond the key person's value to the firm.

The goal is also to assist safeguard earnings and ensure business continuity. Key person insurance does not compensate for real losses, but rather gives a set monetary value as indicated on the insurance policy in the event that the insured person dies or suffers from a critical illness as described in the insurance policy terms and conditions.

Any employee whose expertise, labour, or overall contribution is deemed especially significant to the organisation may be covered by a key person insurance policy on the life or health of the employee. The employer does this to balance the costs (such as hiring temporary help or recruiting a successor) and losses (such as a reduced capacity to conduct business until successors are trained) that the employer is expected to incur if a key worker is lost.

who is a key person?

A key person is somebody who is deeply engaged with the business and whose loss would put the company in financial jeopardy. The individual might be a company director, a partner, a major salesperson, a key project manager, or someone with unique talents or information that is extremely useful to the organisation.

aspects of taxation

The premiums paid will be recognised as a business cost for corporation tax purposes, based on a set of rules laid forth in 1944 by the then-Chancellor of the Exchequer, Sir John Anderson, provided that:

• The proposer's and the life assured's only connection is that of employer and employee (exceptions in the case of shareholding directors - see point 4 below).
• The coverage is simply intended to cover profit loss
• The term of the policy does not extend beyond the key person's value to the firm.
• The employee does not have a big stake in the company (less than 5 percent is probably insignificant).

If the premium is a permissible authorised cost, the policy proceeds are generally taxed. However, there are no hard and fast laws governing the taxation of premiums and benefits, and each matter should be addressed to the local Inspector of Taxes for advice.

It is not true that if the company chooses not to apply for tax relief on the premiums, any revenues will be tax-free. HM Revenue & Customs makes taxing decisions, and there have been reported incidents where the Revenue has taxed benefits on which the premiums did not get tax relief.

However, unless the proceeds are received in instalments, such policy proceeds should normally be tax-free. As previously stated, before the policy is applied, each case should be addressed to the local Inspector of Taxes for assistance.

It is also vital to consider the consequences of taxation when determining the sum guaranteed in key person circumstances.

These plans will have no financial value at any moment and will terminate at the end of the period. If premiums are not paid on time, coverage will lapse.

Information on taxes levels and the basis of reliefs is subject to change and is dependent on current legislation and individual circumstances.

This article (Key Person Insurance) is not designed to give advice, but rather to provide a broad understanding of the subject.

relevant life plan

The plan will not have any financial value at any point and will be terminated at the end of the period. If premiums are not paid on time, coverage will lapse. It is possible that the insurance may not cover all definitions of a critical illness. Please see the Key Features and Policy Documents for definitions of illnesses covered.

A Relevant Life Plan is a death-in-service plan purchased on behalf of an employee by a company.

If an employee dies during the course of their job, this sort of coverage provides a lump payment. A Relevant Life Plan will almost always include a pay out if the employee is diagnosed with a terminal illness. It is vital to note, however, that terminal illness claims will not be reimbursed in the policy's last 12 months.

What are the primary advantages?

In terms of the employer

In assessing your tax obligation, the premiums may be counted as an allowed cost.

Furthermore, unlike a registered group scheme, these insurance have no bearing on the amount of money you may contribute to or accumulate in your pension system.

In terms of the employee

Relevant Life Plan insurance for employees are frequently tax-efficient for high earnings. This is due to the fact that the premiums are paid by the firm, which means they are not normally subject to employee income tax. Premiums/benefits do not count against the employee's annual or lifetime allowances for pension reasons, and the plan is not classified as a registered pension plan, therefore membership does not result in the loss of certain lifetime allowance protections.

Furthermore, if the benefits are paid through a discretionary trust, they are usually exempt from inheritance tax.

Who may Relevant Life Plans be appropriate for?

Limited firms with a small number of employees that are not eligible for group life insurance.

Employees or directors earn a lot of money and have a lot of money in their pension fund. With a Relevant Life Plan, their death-in-service benefits are not deducted from their pension allowance.

Members of group life schemes who seek to supplement their benefits outside the scope of the scheme

Relevant Life Plans are not always appropriate for certain people. Self-employed people, equity partners, and members of limited liability partnerships are among them.

Is there a cap on the Relevant Life plan cover?

Certain requirements must be followed in order for the employee to be eligible for the tax breaks:

• The insurance must be paid in a single lump amount before the age of 75
• Only death benefits can be offered.
• Benefits must be paid through a discretionary trust.
• beneficiaries must be limited to the employee's family members and dependents.

HM Revenue and Customs practise, as well as tax legislation, are complicated and sensitive to individual circumstances and developments that cannot be foreseen.

This article (Relevant Life Plan) is not designed to give advice, but rather to provide a broad understanding of the subject.

partnership protection

The plan will have no financial value at any point in time and will expire at the end of the period. If premiums are not paid on time, coverage will lapse. It is possible that the insurance may not cover all definitions of a serious disease. Please refer to the Policy Documents for definitions of diseases covered.

The importance of protecting your partnership

One of the most significant hazards of a business partnership is that one of your colleagues will die, leaving his or her portion of the company to someone else. That individual may be uninterested in the business or, at worse, adverse to your goals. Similarly, a partner who suffers from a serious illness may choose to maintain the option of staying in the firm or be paid for their exit.

The safety net is a pre-planned scheme to guarantee that the remaining partners have enough assets to buy out the deceased partner's share in the firm or pay the deceased families.

The following alternatives should be considered:

• Appropriate life insurance to pay the acquisition of the deceased's share of the company
• Advice on drafting an appropriate agreement to guarantee that the partnership continues and that the deceased's dependents or family members are funded.
• Plans for partners who retire or get very ill and are unable to work.

advantages for partners

In the event that one of your partners dies or becomes seriously ill, you'll want to make sure that the firm runs as smoothly as possible. Partnership Protection outlines the methods and rules that will assist you in maintaining control:

Agreements, insurance, and trusts can be set up to safeguard the company from the financial and practical consequences of a partner's death or a specified serious illness. Arrangements that can assist in ensuring that your partnership is not automatically terminated

Aids in the protection of your business interests from hostile parties or disinterested heirs. Funds available to purchase the deceased's share in the company at fair market value Business success is expected to continue. Avoid selling assets to repay the departing partner's stake in the company. Assist in retaining staff and consumer trust

This article (Partnership Protection) is not designed to give advice, but rather to provide a broad understanding of the subject.

shareholder protection

For many business owners, operating a firm is a time-consuming and challenging task. What happens if a shareholder dies or gets very ill is rarely considered.

In the interests of financial security, company stability, and continuity, especially for private limited firms with a small number of principal shareholders, it is critical to offer a safety net following the loss of a shareholder:

Shares may be given to the deceased's relatives, who may have no interest in the firm and would rather receive a cash payment.

The other shareholders may desire to maintain control by purchasing lost shares, but they may lack the money to do so.

The shares may be acquired by someone who does not share the company's goals - and may even be a rival.

The proper Insurance Policy provides for adequate cash to be accessible in the case of a shareholder's death or specified serious illness. This guarantees that the firm may continue to run normally while the existing shareholder or their family receives reasonable remuneration.

It offers paperwork that allows the surviving shareholders to receive the cash tax-free under existing rules (as of 2021/22).

shareholder benefits

One of the most crucial aspects of your business in the case of a shareholder's death or specified serious illness is to assure continuation. Shareholder Protection outlines the procedures and policies in place to assist guarantee that you maintain control and have the required cash to do so:

• Arrange for the most suitable transfer of shares to surviving shareholders or the firm at a fair commercial price.
• Set up insurance policies to provide the finances for the purchase of the shares.
• Avoid having to use cash set aside for other purposes.
• Prevent the selling of shares to unfriendly parties or rivals.
• Documentation is required to ensure that all transactions are tax-efficient.
• Contribute to the stability and continuity of the business.
• Assist in retaining workers' and consumers' trust.

The plan will have no financial value at any moment and will terminate at the end of the period. If premiums are not paid, coverage will lapse.

The policy may not cover all definitions of a critical illness. Please refer to the major features and policy papers for definitions of illnesses covered.

Information on taxes levels and the basis of reliefs are subject to change and is dependent on current legislation and individual circumstances.

This article (Shareholder Protection) is not designed to give advice, but rather to provide a general understanding of the subject.

accidental protection

We could plan ahead and make our lives a little simpler if we could anticipate the future. We all know that life isn't like that.

While it is possible to lessen the likelihood of being involved in an accident, there is no way to completely eliminate the danger. What would you and your family do if you were unable to work as a result of an accident? Worse, how would your family live financially if you were permanently disabled as a result of this?

Accident Protection is especially designed to provide you with financial security by paying you a cash lump sum if you suffer from a specific accidental injury.

You may also safeguard your children and the activities you like with our optional cover.

Please contact one of our experts for additional information on appropriate protection options.

This article (Accidental Protection) is not designed to give advice, but rather to provide a general understanding of the subject.

general insurance

Home and Content Insurance

Getting home insurance is usually a smart idea; you've worked hard to purchase your home and belongings, and you're right to be proud and protective of them. We can advise you on the many methods for safeguarding your most valuable items.

We also advise on a range of optional extras such as

• Content Insurance
• Accidental Damage Cover
• Loss of Income cover
• Home Emergency Cover

Please contact one of our experts for additional information on appropriate options and your specific home insurance requirements.

landlord insurance

If you rent out your buy-to-let home to renters, Landlords Insurance can safeguard you and your investment property. We can advise you on appropriate coverage whether you rent a single house, many residences, or a big home rental portfolio.

Landlord insurance can protect you from financial loss caused by a fire, flood, storm, or theft. It may include owner's liability insurance, as well as insurance against tenant damage, loss of rental revenue, or unpaid rent.

We also advise on a range of optional extras such as

• Tenant Content Insurance
• Accidental Damage Cover
• Loss of Income cover
• Home Emergency Cover

Please contact one of our experts for additional information on appropriate options and your specific Landlord Insurance requirements.