The sum assured of £150,000 was recommended as the clients felt this was sufficient to assist with providing the company with additional support. The funds could go towards employing a replacement, paying salaries and/or paying for the training required to bring the replacement up to a suitable standard.
In order for the policy to be valid for corporation tax relief, the maximum term of five years was applied, which will be reviewed at the end of the term.
Numerous insurers were sourced before we settled on the most competitive policy and recommended it to our clients.
Key requirements: –
• An insurer offering key man business protection cover. • An insurer offering £150,000 of cover over a five-year period, which the clients felt was the right amount to protect their business.
After sourcing our panel of insurers, we identified a provider who could offer the right level of Key Man business protection cover. It was also able to offer £150,000 of terminal illness cover at no extra cost.
The application process: To support the clients’ insurance application, we helped them fill out forms giving a range of information about themselves, including their age, smoker status, and details of their current health and their business. We were delighted to inform our clients that the insurer had offered them cover for the full amount requested at a competitive rate.
• Cover: £150,000 (terminal illness cover of £150,000 included at no extra cost) per director • Policy length: five years • Total monthly premiums: £24.85