Health Protection
Health protection is a vital part of any business's financial planning, both for the continuity of the business and the protection of staff and profits. We have listed some of the options below:
Permanent Health Insurance (PHI)
A policy which provides replacement income of usually of up to 50% of the employee’s net income in the event of inability to work due to ill health. The plan pays benefits after a deferred period of between 4-104 weeks dependent on the level of premium chosen. The deferred period is the time before any replacement income is paid. The benefit allows the employer to protect the employee whilst ill, without being a significant drain on the business profits.
Critical Illness Protection (CIP) *(see taxation below)
As a complement to PHI protection, this plan offers a lump sum benefit in the event of diagnosis of a specified serious illness. A survival period is usually specified and the lump sum benefits can be paid to employer to help the business.
Company Private Medical Insurance (PMI)
A protection arrangement for the directors/partners and employee's of a company/practice to go towards the cost of medical expense in the event of medical attention or need. This benefit, although paid by the employer, is treated as a benefit in kind to the employee. The cost and benefit of these arrangements can be tailored to your budget and needs.
*Taxation of Premiums & Benefits
To allow the premiums for these policies to be an allowable expense, it is sensible to gain confirmation from your inspector of taxes before you proceed. The benefits are usually treated as a trading receipt.
As Churchouse Financial Planning Limited knows, each company requires individual solutions. Contact us to discuss your needs.
Please note that this is for guidance only and we recommend that you seek further advice from an Independent Financial Adviser before proceeding further. The Financial Services Authority does not regulate taxation advice.
