Need comprehensive health cover - maybe through Ltd?

[NotAllThere]

With most policies your company can pay them but they will be a benefit in kind. In those cases it's often easier to just pay them personally.

There are some policies I've heard of that can be paid without a BIK, but an IFA would be able to advise on them further.

AIUI - and IANAA... If you have a policy to protect your earnings, then if the company pays the premiums, there is BIK. Claims paid out on the policy are tax free. If the company has a policy protecting itself against your illness, then there is no BIK. Claims are paid out to the company, so to get you mitts on it, you have to declare a dividend/pay a salary etc.

[contractor79]

Just curious, but why don't you pay yourself a salary between contracts?

Partly as my accountant advised so, partly as I don't want to exhaust my company account in this way. Plus when I suggested this to a few insurers they said no if you're not actually working then you can't claim.

I suggest an alternative way to insure oneself is as follows : take out critical illness and then take out personal accident insurances. Also you can get short term sickness insurance - I got mine from caunce o hara which pays out if you're sick for more than a week up to 52 weeks. This should cover you as an alternative to Income Protection which does seem like a complicated product with may disappoint.

[Mr.Whippy]

Hmm, well I've investigated further and have found that these Income Protection policies do not pay out if you're inbetween contracts and not paying yourself a salary.

As was said earlier in the thread that's not covered on the standard T's & C's, but they will do it for an increase in premium.

Just curious, but why don't you pay yourself a salary between contracts?

[contractor79]

Hmm, well I've investigated further and have found that these Income Protection policies do not pay out if you're inbetween contracts and not paying yourself a salary.

Perhaps an alternative is to get critical illness cover to the value of your mortgage, then personal accident cover which may cover you for temporary sickness too. These don't depend on you having to work and pay yourself salary & divs.

IP has too many conditions attached to be worthwhile, it seems.

I'm quite happy to pay insurances worth up to £1000/year through my ltd company then up to £1000/year personally.

[Clare@InTouch]

With most policies your company can pay them but they will be a benefit in kind. In those cases it's often easier to just pay them personally.

There are some policies I've heard of that can be paid without a BIK, but an IFA would be able to advise on them further.

[Mr.Whippy]

This is the policy that I was recommended by my IFA.

[contractor79]

thanks, yes I'm looking for an IP that you can claim on in the downtime, I don't pay myself when I'm not working on a contract

[Mr.Whippy]

I have an income protection plan with Unum. As standard it doesn't include cover if you're not working but that level of cover can be added for extra premium, but that refers to being in "paid occupation" which you are if you still pay yourself....

The policy I have is designed for one-man ltd co's. and is paid for through the company... although if you do claim, you then have to pay tax personally on the income it provides.

[SueEllen]

Thanks SueEllen. I used to have an income protection policy through Dentist and General. However, you can only claim for it if you are actually working. It became too much of a chore to stop and start premiums as contracts were stopping and starting.

If you are the director/company secretary of a limited company as well as the company's employee, as long as you pay yourself a salary when you aren't in a contract then legally you are still in employment.

Unfortunately it's a case of reading the small print to confirm they don't exclude company directors/company secretaries in this situation.

BTW Dentist and General now have a self-employed Income Protection Micro site. This may not be the best as other insurers should insure you as above.

Also the PCG has advice on insurances you should consider and what they cover. Just google "PCG insurance". (The url is long and messy.)

[contractor79]

Perhaps a 6-month deferred IP would be better. Although I am not sure if there are ones which suit contractors who are in and out of work. No point having one which you can only claim for only when on a contract. What if you got long term sick when not working? Then you have to live on your savings until they run out then state benefits. How would your mortgage be paid then?

[contractor79]

Thanks SueEllen. I used to have an income protection policy through Dentist and General. However, you can only claim for it if you are actually working. It became too much of a chore to stop and start premiums as contracts were stopping and starting.

[SueEllen]

In terms of the list of the insurances you mentioned some of them overlap so you should really decide what you need. The best summaries I have read have come from advisers who use the moneysavingexpert.com forums.

Also some of the insurances that you have mentioned i.e. income protection has to be brought via an IFA. However you can use Cavendish Online who are an execution-only IFA.

Finally one of the accountants should be along soon to say whether it's worth you paying it personally or through the company.

[contractor79]

hi there
can any contractor recommend any health insurance, income protection insurance, critical illness, personanl accident etc. etc. cover, ideally all-in-one, that is contractor friendly and maybe possible to pay for through a Ltd company if this is advantageous tax-wise?
thanks