Income protection is gaining a lot of attention at the moment.
And while many of us do not want to profit from the fears that people are experiencing due to Covid-19, it makes sense to use this moment to shout about the benefits of IP.
Legal & General has just launched its Executive Income Protection offering, which can be arranged by a limited company owner for themselves and/or key employees.
In many ways it is set up in a similar way to personal IP policies, but there are some key differences.
The IP policy is arranged with a maximum sum assured of 80 per cent of the person’s income and can run up to age 70.
Deferred periods start from a minimum of four weeks up to 52 weeks, and it is possible to choose limited benefits of a one to two-year claim period.
A big benefit is that the policy premiums can be paid through the company, which in most circumstances can result in tax relief of the premiums.
For someone that is interested in IP, one of the first things to check is if they have their own company, or a key decision maker with the organisation.
They may approach you for personal IP with no knowledge that there is an option to arrange this and pay it through the company.
This conversation could lead you into a discussion of executive IP or potentially group IP.
Arranging this kind of policy for a member of your team, and which provides access to a number of support services, will show the employee that you value them.
This places less pressure upon the employer financially and will hopefully find the team member back at work more quickly, retaining their talent and experience performing the role, while the training that L&G is offering on this is quite engaging.
Kathryn Knowles is managing director of Cura Financial Services
