Is tax relief available on premiums?
There are specific conditions that have to be met before you can claim a deduction for the cost of the premiums. The most important one is that the policy is to cover expected loss of future profits as a result of the death of the life assured. AEGON Scottish Equitable can give you full details on this.
What are the underwriting limits for this type of policy?
We have one of the highest underwriting limits in the market, making us a particularly appropriate choice for this type of high protection policy. For 'clean' applications (where no additional underwriting is required) up to age 30, for example, we can accept up to £500,000 of life cover or critical illness protection, or both, without further medical evidence.
Are benefits paid as a lump sum or in instalments?
Benefits are paid out as a lump sum, on the death of the assured person, or shortly after a critical illness is diagnosed. Income protection benefit is paid in instalments.
What term can the policy cover?
You can choose the term of the policy to cover the working life of the key person, up to age 65, or for a fixed term to cover a particular period of business activity or a loan.
Does AEGON Scottish Equitable offer an immediate acceptance facility on Business Protection?
Where urgently required, immediate acceptance is available for up to £2 million of life cover and up to £500,000 of critical illness protection and disability cover. However, this is only available by special arrangement.
Could a partnership be covered by a key person protection policy?
Yes. Either partners or employees of a partnership can be covered. Partners who aren't covered by the policy should be named as the applicants. Partners can also cover themselves using trust arrangements so that the benefits pass to their co-partners. Please note that a partnership in England and Wales cannot hold a contract in its own name, whereas a partnership in Scotland can.
Next steps
If you would like more information about our key person protection, you should talk to a financial adviser.
Further information... Who should I talk to?
Speak to your financial adviser to find out more. If you don't have an adviser, the IFA Promotion Service or the Society of Financial Advisers can help you find one.