Make Locum Insurance and Income Protection Work For You
We can’t predict the future and one thing that the Covid crisis has taught us is that even successful businesses can be at risk due to cash flow or short staffing issues, should key members of staff be unable to work.
If you have an accident or suffer from ill health or an injury, here’s some advice on tax-advantageous ways to protect your business and personal finances.
Having a business continuity plan in place is essential, not only to provide peace of mind but also to provide stability through the good times and the bad. Fortunately, business owners can combine business Locum Cover and personal Income Protection in a very streamlined, tax and cost-efficient manner.
How Locum cover can protect your business income
Locum cover provides an income to the business if you or other insured staff members are absent from work due to an accident, illness, or injury.
You can select the amount of money that you would like to receive, within an agreed limit, in the event of you being absent from work. This is typically paid weekly up to a maximum of 52 weeks and is treated as normal business income to be used in any way the business sees fit to keep the business running. This could be used to hire a locum to cover the absent staff member, pay for overtime of other staff, or to simply help keep the business afloat whilst a key person is missing.
As a form of business insurance, locum cover is flexible and reviewed each year to ensure the details of the cover always reflect the changing needs of the business. Locum cover is also tax efficient as the premiums are tax deductible as a business expense.
Polices also come with several extra benefits such as maternity & paternity benefits, bereavement, family emergency and jury service.
How Income Protection can protect your personal income
Once your business is protected over the short term it is also important to ensure you and your family’s personal finances are protected over the long term.
Personal Income protection can be arranged to fit seamlessly with the locum cover to start paying a replacement income from 52 weeks (when the locum cover ends) onwards up to retirement age. This policy is very cost-effective when combined with locum cover to start from 52 weeks. It is a personal insurance that will pay straight into your personal bank account. As a personal insurance, the premiums are not tax deductible, however, the monthly benefit you receive is free from tax. The prices income protection policies start at, are set whilst you are younger and in good health and will provide long-term support that can be used as many times as needed.
Find out more
Lloyd & Whyte can offer comprehensive and competitive Locum insurance and Income Protection policies that can work in tandem to give you the peace of mind that you are covered in the most cost-effective way possible.
