Let’s think differently - Paradigm Protect Presentation... · An equity partner in a partnership A member of a LLP Who can apply? Who can’t apply? Only an employee can be an insured

Let’s think differently

Mark Godding

National Account Manager

For intermediaries only

2Let’s think differently

To have a better understanding of the

opportunities that exist in the corporate

market.

To understand Relevant Life protection.

To understand executive income

protection and how this compares to

personal income protection.

Learning outcomes



Given the choice, who would your clients prefer paid their

premiums, to safeguard their lifestyle?

a) Their company or employer.

b) Themselves out of net income.


Why do your clients need your help?

Cash needed for

employee’s family

when they die.

Cash needed for

executive if they’re

unable to work due

to an accident or

illness.

Cash needed for:

• loan

repayments;

• loss of profits;

• recruitment, and

• loan accounts.

Cash needed to

buy the

deceased/ill

owner’s share of

the business.

Tax-efficient life

protection

Executive income

protectionContinuity planning

Succession

planning

Family Business

6

Tax-efficient life

protection



Sole traders

Partnerships

Limited liability partnerships (LLPs)

Limited companies

Charities

Customer eligibility

Sole traders (in their capacity as

business owner)

An equity partner in a partnership

A member of a LLP

Who can apply? Who can’t apply?

Only an employee can be an insured person.


Relevant Life benefits

Increasing Level Reducing Renew every five

years


Relevant Life target markets

Small businesses and their owners

Certain high-earning employees

Members of group life schemes who want to top-up benefits


Relevant Life tax calculator

This information is based on our understanding of current taxation law and HM Revenue & Customs (HMRC) practice, which may change.



















17```

Executive income

protection



Comparison

Executive income protection

Policy owner Company

Maximum benefit available 75% of taxable earnings (including

dividends), up to a maximum of £150,000

(£30,000 to cover pension and National

Insurance (NI) contributions)

Policy payments made by Company

Benefit paid to Company, who in turn continues to pay the

insured employee through PAYE, with tax

and NI deductions



Comparison

Executive income protection

Policy owner Company

Maximum benefit available 75% of taxable earnings (including

dividends), up to a maximum of £150,000

(£30,000 to cover pension and National

Insurance (NI) contributions)

Policy payments made by Company

Benefit paid to Company, who in turn continues to pay the

insured employee through PAYE, with tax

and NI deductions


Insured person

Lower of 55% of the insured

person’s total earnings, and

£150,000

Insured person or company

(P11d benefit)

Insured person, tax free.

Personal income protection


ComparisonExecutive income protection

Tax treatment • Policy payments are generally an

allowable business expense.

• Claim proceeds are taxed as a

trading receipt.

• Benefit paid to employee normally

an allowable expense and would

be subject to PAYE and NI.

Benefits • Rehabilitation benefit

• Proportionate benefit

• Career break option

Benefits treated as

pensionable earnings?

Yes



ComparisonExecutive income protection

Tax treatment • Policy payments are generally an

allowable business expense.

• Claim proceeds are taxed as a

trading receipt.

• Benefit paid to employee normally

an allowable expense and would

be subject to PAYE and NI.

Benefits • Rehabilitation benefit



Benefits treated as

pensionable earnings?

Yes

Personal income protection

• If employer makes the policy

payments, taxed like additional

salary (ie PAYE and NI).

• If paid by insured person, this will

be paid from net income.

• Benefits are paid tax free.

• Rehabilitation benefit



• Income promise of £1,500, less any

continuing income

• 10% benefit tolerance

No



Executive income protection calculator

Personal income

protection

Executive income

protection

Cost to employee

Monthly policy payment £100 N/A

Employee NI contributions £3.45 N/A

Employee tax £68.96 N/A

Cost to employer

Monthly policy payment N/A £100

Employer NI contributions £23.79 N/A

Corporation tax relief (£37.27) (£19)

Total monthly cost £158.93 £81

Executive income protection saving: £77.93 or 49.03%.




Given the choice, who would your clients prefer paid their life

insurance and income protection premiums?

a) Their company or employer.

b) Themselves out of net income.

Do you give your clients the choice?


Price Pledge

Price Pledge is our offer to beat our competitors’ monthly or yearly

premiums.

What benefits is it available for? Level and reducing Relevant Life

Level and reducing life protection

What’s the minimum qualifying

premium?

£100 a month or £1,200 a year

Terms and conditions apply.

2727

New protection online service



New protection online service

New underwriting engine

and more automation.

Better online

experience for you.

Making it easier for you to do

protection business with us.


Clearer questions


Estimated pricing


2019

Streamlined online application service.

Quicker underwriting decisions – for both clean and rated lives.

Estimated prices as you progress through the application.

A seamless experience across all devices – desktop, laptop, tablet and mobile.

Improved flexibility of our menu proposition.


Policy PlusHealth and wellbeing

service – confidential

counselling and online

self-help tools – available

all day, every day.

Second medical

opinion service - a

face-to-face consultation

with a UK-based

specialist to review a

recent medical diagnosis.

Key person replacement

service – recruitment support

to help keep clients’

businesses running, if they, or

a key employee, are unable

to work.

Funeral payment pledge –

we can make an early

payment of up to £10,000

towards funeral costs, when

probate causes delays.


have a better understanding of the

opportunities that exist in the corporate

market.

understand Relevant Life protection.

understand executive income protection

and how this compares to personal

income protection.

Learning outcomes

You should now:

Thank you

Mark Godding

National Account Manager

Visit www.aegon.co.uk/protection or call 03456 00 14 02 (Monday to Friday 8.30am to 5.30pm)

PROT379548/04/19

Emma Wood

AEGON Protection Consultant

[email protected]

0131 338 5958

Gemma Ingram

AEGON Protection Consultant

[email protected]

0131 338 5910

mailto:[email protected]

mailto:[email protected]

Documents

Let’s think differently - Paradigm Protect Presentation... · An equity partner in a partnership A member of a LLP Who can apply? Who can’t apply? Only an employee can be an insured