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Since 2006 we have helped 339,597 people compare Protection Insurance quotes. Five Stars (4.9) We would love to do the same for you...

Now’s the time to protect your business - Prices have never been cheaper.

Our quotation service is completely FREE & you are under no obligation to purchase.

Since 2006 we have helped 339,597 people compare Protection Insurance quotes. Five Stars (4.9) We would love to do the same for you...

What type of Business Protection are you looking for?

  1. Key Man Insurance

    This type of policy protects businesses financially if a key individual within the business dies or can no longer act in any capacity with immediate effect. It is often required by lenders to cover the full repayment of a loan. It is an important consideration for many small and medium-sized businesses.
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    Key Man Insurance or Key Person Insurance is essentially a form of life insurance for businesses. It is generally taken out by a business to compensate for financial losses that would arise from the death or extended incapacity of the key individual(s) of the business specified in the policy, and in turn ensure the continuity of the business.

    There are generally three categories of loss for which Key Man Insurance can provide compensation:

    • Protect losses related to the extended period when a key person is unable to work by providing temporary personnel and, if necessary, financing the recruitment and training of a replacement.
    • Protect profits such as offsetting lost income from lost sales or contracts; or losses resulting from the delay or cancellation of any business project that the key person was involved in; or loss of opportunity to expand, loss of specialised skills or knowledge.
    • Protect business & director loans, overdrafts or investments. The value of insurance arranged can be used cover their repayment in full, or to assist in generating continued profit (as above) to help make any monthly payments.

    As a result, a Key Man or Key Person can be anyone directly associated with the business whose loss can cause financial strain to the business. For instance, they could be a Director of a company, a Partner, key sales people, key project managers and people with specific skills or knowledge which is especially valuable to the company.

  2. Shareholder Protection Insurance

    This type of policy helps businesses continue effectively on the death of a shareholder (or a Partner in a Partnership) by releasing a lump-sum that allows other shareholders to buy the shares and provide fair-value funds to the surviving spouse.
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    In the interests of financial security, business stability and continuity, it is essential for private limited companies to provide a safety net following the death of a shareholder.

    Shareholder Protection is usually put in place to ensure that, on the death of a shareholder, their shares are available for the other directors to buy and there is sufficient cash available to buy the shares.

    This is normally done by:

    • Taking out a life insurance policy for each director to the value of their shares
    • Placing these life insurance policies in trust so that any payout is available to the remaining shareholders without any tax implication
    • Setting-up a Cross Option Agreement between the shareholders so that if the options are exercised, the holder of the shares must sell them and the other directors must buy them

    The risk of not setting up some Shareholder Protection are as follows:

    • Shares may go to the deceased’s family, which has no interest in the business and may prefer a cash lump sum
    • The company or other shareholders may not have the resources to retain control by buying the deceased’s shares
    • The shares may be taken over by someone who does not share the company’s objectives, and they may even be a competitor
  3. Relevant Life Cover

    This type of policy can provide a complete tax-free solution to life insurance for company directors where both the premiums and the lump-sum payment in the event of a claim are tax-free. The premiums are not classed as a benefit-in-kind and, if the policy is written into a discretionary trust, then any payout is not subject to inheritance tax.
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    If you’re a company director and you have life insurance in place to protect your family, you could be paying more tax than you need to.

    Relevant Life Policies are a way of providing death-in-service benefits on an individual basis no matter how small your business is. They are not classed as a ‘benefit in kind’ so no tax is payable on the premiums. In most cases the benefits can be paid free of inheritance tax provided the benefits are payable through a discretionary trust.

    What are the benefits?

    • Although the company pays the premiums, they are not normally assessable to income tax on the employee as a benefit-in-kind. This can be a significant saving, particularly for a higher-rate taxpayer
    • Unlike a registered group scheme, the benefit will not form part of the employee’s annual or lifetime pension allowance

    What are the advantages of using a discretionary trust?

    • There are restrictions as to whom the benefits of a Relevant Life Policy can be paid, but the use of the trust is the most practical way of ensuring these restrictions are met. The beneficiaries who could be included are usually family members and dependents.
    • Having benefits paid through a trust ensures they cannot be taxed as part of the company’s trading income, nor do they form part of the company’s assets.
    • The trust is discretionary, allowing trustees to be flexible as to whom they pay benefits. However the employee can advise the trustees of his or her intentions by completing a nomination form. Although this is not legally binding on the trustees, it helps to guide them. The trustees will normally be the directors of the company.
    • Using a trust also ensures that in most circumstances benefits are paid free of both income tax and inheritance tax.
    • The maximum cover differs across insurers: for example, Bright Grey offer a figure up to 15 times the employee / director’s remuneration. This can include salary, regular dividends paid in lieu of salary and any benefits in kind.

    Are there any limits to the cover I have?

    • The legislation does have some limits to qualify for the tax concessions, and to ensure these are met, it requires that:
    • The cover must be paid in a single lump sum before the age of 75.
    • Only Death & Terminal Illness benefits can be provided.
    • Benefits must be paid through a discretionary trust.
    • Beneficiaries are normally restricted to family members and dependents.
    • The maximum amount of cover allowable can depend on your remuneration and age.

    Who are relevant life policies suitable for?

    • Company Directors that would like their company to pay for their life cover and offset the premiums against corporation tax
    • Small businesses that do not have enough eligible employees to warrant a group life scheme.
    • Directors of small limited companies that may be thinking of putting Key Person cover in place so that their company can pay the premiums on their cover
    • High-earning employees or directors who have substantial pension funds and do not want their benefits to form part of their lifetime allowance.
    • They are not suitable for the self-employed or equity partners, although their employed staff could be covered.
  4. Can't decide?

    For free advice, speak to a UK based adviser on: 0800 316 6917* (8am-8pm Mon-Fri & 9am-2:30pm Sat)

    * The telephone service is provided in partnership with LifeSearch Ltd

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Personal Service

We have tracked down the very best protection insurance advisers in the UK to ensure you have access to best advice and the best products from the leading insurers.

Instead of pushy sales people, our advisers offer a more personalised service to guide you through the process and ensure you enjoy lasting peace of mind by making an informed choice.

Get Insured within 20 Minutes

It is possible to be protected with a life insurance or critical illness policy within 20 minutes provided the insurer does not require a GP report or medical.

A GP report or medical is normally required for large amounts of cover (over £400,000), or if your BMI is over 30, or you have any significant ongoing or past medical issues, or if you are involved in dangerous job or high risk hobby.

Calculate Your Cover

Find out how much cover you might need by using our simple online calculator. It will take into account your outstanding mortgage, any loans or credit cards, your monthly income and how many children you have.

Ultimately the right amount of cover is often a balance between what might be an ideal figure and what you can sensibly afford.

Calculate your cover here

Personal Service

We have tracked down the very best protection insurance advisers in the UK to ensure you have access to best advice and the best products from the leading insurers.

Instead of pushy sales people, our advisers offer a more personalised service to guide you through the process and ensure you enjoy lasting peace of mind by making an informed choice.

Read What Our Customers Think of Us

Five Stars (4.9)

Great communication, help and guidance.

All my questions were answered, as I know little on how life cover, critical illness and terminal insurance policies work.

I was given good independent advise, so I could confidently make my choice on what was right for me.

- Denise

Clear, friendly, efficient and prompt service.

No nonsense, no jargon, just clear and informative guidance. Very quick with results which did not disappoint. Delighted with my deal which was a third cheaper than my own bank offered me and I didn’t do any of the legwork. More than happy to recommend.

- Ms Shannon

I found the customer service representative very polite and informative and helpful.

I wished some information on life insurance for a mortgage I have applied for.

All in all the process was very useful and informative and the representative was very helpful and polite. I would recommend this online service to anyone who is looking for life cover.

- Mrs Severn

Very good professional service.

I was impressed by the quality of service by the advisor who dealt with my request. He has carefully listened to my requirements, asked a few relevant questions and has provided me with the option which suited my needs in the best possible way. I have really admired his flexible approach and fantastic customer skills.

- Mrs Cookson

Professional and no-nonsense approach.

Very thorough yet friendly service. Good contact and information one can understand.

- Heather Cronley

A professional customer centric company with the client at the heart of the transaction.

The advisor put me at the heart of the transaction, was professional, gave realistic opinions and suggestions offering me choices in clear terms which I understood.

- Andrew Hughes

Outstanding service and knowledgeable customer service rep.

I received a call as promised in my email. Marie Bedding was very knowledgeable in her subject matter, she took some basic details and was very polite and courteous in her manner.

Marie was very sensitive when discussing personal circumstances and listened carefully and showed compassion to my details. Marie then said ‘leave it with me and ill get back to you’, within 20 minutes Marie was back on the phone with the quotes as promised and gave me a selection of options to chose from.

Marie did not pressure me with the ‘Hard Sell’, I needed time to discuss the options with my partner, Marie kindly emailed me all the details and left it in my hands to contact her once I had made a decision and if I would like to go ahead with the policy.

I cannot fault this service and the professionalism I received.

- N Marsden

Excellent Service.

Great service, easy to understand terminology. Everything explained and documented by adviser. Thank you.

- Glenda

The quotation service is provided by an FCA-authorised insurance specialist

Promoted Premiums for 35 year old male (non-smoker) on a 25 year term - September 2022*
Life Insurance: £5/month = £65,371 sum insured
Critical Illness Cover: £10/month = £27,546 sum insured
Combined Life & Critical Illness Cover: £10/month = £25,230 sum insured

 

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