Business protection could help your business to continue to trade should a key person or the business owner die or become terminally or critically ill. Proceeds from the policy could help ensure that key individuals are replaced, corporate debt is protected and shares from the deceased partner’s/director’s estate are purchased.
Life protection for individuals in a business work in a very similar manner to Life Protection in a personal environment with ‘Whole of Life’, term protection and cover in the event of a critical illness.
It is important to consider protection for your business as it provides evidence of best practice and demonstrates an effective disaster recovery strategy.
Example
Non-Relevant Life Plan
Relevant Life Plan
COST TO EMPLOYEE | |
Monthly Premium | £100.00 |
Employee National Insurance Contribution | £2.56 |
Employee Income Tax | £25.64 |
Employee Dividend Tax | £0.00 |
Gross Earnings Needed | £128.21 |
COST TO EMPLOYEE | |
Monthly Premium | N/A |
Employee National Insurance Contribution | N/A |
Employee Income Tax | N/A |
Employee Dividend Tax | N/A |
COST TO EMPLOYER | |
Monthly Premium | N/A |
Employee National Insurance Contribution | £17.69 |
Total Gross Cost | £145.90 |
Less Corporation Tax | £58.36 |
Tax Adjusted Total Cost | £87.54 |
COST TO EMPLOYER | |
Monthly Premium | £100.00 |
Employee National Insurance Contribution | N/A |
Total Gross Cost | £100.00 |
Less Corporation Tax | £40.00 |
Tax Adjusted Total Cost | £40.00 |
To find out more, call us on 01932 253939 or email us at info@bigmoreassociates.com © 2018. Bigmore Associates.