I recently secured both business and personal insurance cover for a couple who, like so many, found a solution they hadn’t realised was even an option to them! These clients, a couple in their late 30s/early 40s were previous mortgage clients of Enness and the owners of a limited company. They had no life cover at all but possessed a complex situation that required some protection.
Their main residence was owned (with a mortgage) in a family members’ name. This meant that if anything were to happen to that family member, my clients would be left homeless. In order to protect them against this, I arranged a ‘life of another’ life insurance on the family member to guarantee that if anything were to happen to them, my clients could clear the mortgage and remain in their home.
Having resolved the issue above we agreed some life insurance to protect each other would be appropriate. Owning their own company, we achieved this by setting up ‘Relevant Life’ insurance through their Limited Company. This acts as a Death in Service facility held in trust to the chosen beneficiaries, so is tax efficient for the clients and their company.
Arranging this via the company, I collected more information about how it functioned. It became apparent one of generated a large amount of revenue and was the key driver of business. Because of this, I recommended Key Person Insurance which meant that if anything were to happen to them, the business would still be financially protected.
With both their business and personal insurances covered, through the use of relevant life plans and key person insurance, this solution not only provided the benefits of a large company to a smaller one, but ensured all business and personal cover was taken care of in the most tax efficient way.