Relevant Life Insurance

Transcription

1 Relevant Life Insurance

2 Learning objectives To have an understanding of: 1. What relevant life insurance is and the appropriate target market 2. The tax efficiencies of a relevant life contract 3. How to prospect for and engage with clients in this market For adviser use only. Not to be shown to retail customers.

3 Agenda What is relevant life insurance? Why it matters Costs and case studies About Ageas Relevant Life Insurance Setting it up Summary For adviser use only. Not to be shown to retail customers.

4 What is relevant life insurance? Relevant Life Insurance is taken out by an employer to provide a life insurance for an employee The employer applies and pays for the employee s cover, and it is always on a life of another basis Covered by legislation that means it s tax efficient Who is involved? Owner Employer Payer Employer Person Covered Employee Trustees The Employer & Employee Beneficiaries (Typically) Employee & their family

5 How is it tax efficient? The employee Business pays the premiums Not treated as a benefit in kind, so employee does not pay tax or NI on the premiums The beneficiaries Written into trust so no income tax or IHT Does not count towards lifetime pensions allowance (capped at 1.25 million for ) Tax will only be an issue if assets remain in trust beyond a 10 th anniversary The business Can usually claim tax relief on the premiums, but Must meet wholly and exclusively rules (i.e. be for the purpose of trade as part of the employee s remuneration)* *The local inspector of taxes need to agree this

6 Agenda What is relevant life insurance? Why it matters Costs and case studies About Ageas Relevant Life Insurance Setting it up Summary For adviser use only. Not to be shown to retail customers.

7 (ONS data - Weekly Provisional Figures on Deaths Registered in England and Wales, Week Ending 21/02/2014 and Week Ending 28/02/2014 ) The value of employee benefits

8 4.9 million private sector businesses in the UK 75% sole proprietor 20% micro 4% small 1% medium Business population - by size Sole proprietor Micro (1-9) Small (10-49) Medium (50-249) Large (250+) 0.2% large Source: Business population estimates 2013 Department for Business Innovation and Skills For adviser use only. Not to be shown to retail customers.

9 Business or personal? For adviser use only. Not to be shown to retail customers.

10 How do you engage them? Existing client bank Do you have clients who are directors of their own business? Prospecting for new clients Business parks or business centres Accountants Solicitors

11 Agenda What is relevant life insurance? Why it matters Costs and case studies About Ageas Relevant Life Insurance Setting it up Summary For adviser use only. Not to be shown to retail customers.

12 Life insurance for Helen

13 Cost comparison For adviser use only. Not to be shown to retail customers.

14 Agenda What is relevant life insurance? Why it matters Costs and case studies About Ageas Relevant Life Insurance Setting it up Summary For adviser use only. Not to be shown to retail customers.

15 Why Ageas Protect? 1. High cover limits 2. Best Doctors & Winston s Wish 3. Online trusts

16 What does Ageas Protect provide? Level or increasing life insurance up to: Age Maximum cover x salary* x salary* x salary* *this includes salary, bonus, and dividends paid in lieu of salary plus any taxable benefit in kind. Limits Minimum term 3 years Maximum term 50 years Minimum sum assured - 10,000

17 Support from a selection of the world s best doctors as voted for by other doctors Employee can use it as soon as the policy goes on risk Covers them, their children and their partner Can use it at any time during the policy, as many times as they need to Advice on their condition and treatment options, not just from any doctor, but from a selection of the best in the world Quickly, easily and free of charge

18 Specialist charity for bereaved children providing guidance, counselling and therapeutic support Ageas Protect will assist with the additional costs of this support to our customers It s available to the policyholder s immediate family when they ring to make a death claim For adviser use only. Not to be shown to retail customers.

19 Agenda What is relevant life insurance? Why it matters Who you can recommend it to Costs and case studies About Ageas Relevant Life Insurance Setting it up Summary For adviser use only. Not to be shown to retail customers.

20 Quick submission process Over 90% of applicants need no GP report Proof of earnings only required over 3m No financial questionnaire

21 Online trust form We use a split trust so the employee can choose to retain terminal illness benefits. Must be in trust from outset, but with Ageas Protect you can do it using our: Online split trust declaration form, or Paper split trust declaration form (you don t need to send us a copy, but you will need to declare it online) So, it s easier to get everything in place right from the start. In addition: Employer and employee both need to be a trustees

22 Agenda What is relevant life insurance? Why it matters Costs and case studies About Ageas Relevant Life Insurance Setting it up Summary For adviser use only. Not to be shown to retail customers.

23 Summary

24 Learning objectives To have an understanding of: 1. What relevant life insurance is and the appropriate target market 2. The tax efficiencies of a relevant life contract 3. How to prospect for and engage with clients in this market For adviser use only. Not to be shown to retail customers.

25 Any questions? For more information, sales tools or any help: