Protection Review
Tax-Efficient
Protection
A personalised review of your current protection portfolio and the opportunity to restructure through your limited company.
Benjamin Warden
Lecturer · Limited Company Director
Our Recommendation
The Opportunity
Dear Ben,
Thank you for taking the time to speak with me about your protection arrangements. Having reviewed your current portfolio in detail, I want to set out clearly what we have found, why it matters, and what we can do about it.
At present, you are funding approximately £297 per month from your personal, post-tax income across multiple protection policies held with different providers. These policies were set up at different times, for different purposes, and several of them overlap. Critically, none of them are structured through your limited company — which means you are missing out on significant tax efficiencies that are available to you as a company director.
The position is this: every pound you spend on personal protection is a pound that has already been taxed. As a limited company director, you have the ability to restructure your protection so that premiums are paid by your business as a legitimate expense, qualifying for 19% Corporation Tax relief. The proceeds of a Relevant Life Plan are written into a discretionary trust — meaning they fall outside your estate for Inheritance Tax purposes, are not treated as a Benefit in Kind, and do not affect your personal tax code.
Beyond the tax position, there is a substantial opportunity to improve the quality of your cover. Your current critical illness policy pays out just £25,000 — a figure that, in the event of a serious diagnosis, would cover only a fraction of your financial commitments. Modern products such as Vitality's Business Serious Illness Cover offer up to 167 conditions with severity-based payouts and the ability to claim up to three times. Your income protection can be upgraded to an Own Occupation definition — the gold standard — meaning it pays out if you cannot perform your specific role, not just any job.
Our recommendation is to consolidate your fragmented personal portfolio into three robust, business-funded policies: a Relevant Life Plan for tax-efficient life cover, Vitality Business Serious Illness Cover (3X) for comprehensive critical illness protection, and Executive Income Protection with L&G for salary and dividend replacement. All running through your business. All saving you 100% of the personal cost. All tax efficient. All with no P11D benefit. And where applicable, written into discretionary trusts for the benefit of your family.
The pages that follow set out each element of this opportunity in detail — what each product does, how it works, why it is better than what you currently have, and what the financial impact looks like over the term of your policies.
Jordan Tomlinson
Mortgage & Protection Adviser
Broadbench Ltd
Current Portfolio
Your Existing Cover
You currently hold nine active protection policies across multiple providers, all funded from your personal post-tax income. Below is a summary of each policy, its current status, and our assessment.
All Policies Personally Held
Every policy in your current portfolio is paid from your personal, post-tax income. As a limited company director, this means you are paying for protection with money that has already been subject to Corporation Tax, Income Tax, and potentially National Insurance. This is the single largest inefficiency in your current arrangement.
L&G Life Insurance
£100k · Mortgage cover to age 80
Personally held — no CT relief. Could be replaced with business-funded RLP.
Scottish Widows Life
£110k · Mortgage cover (9 years remaining)
Personally held — limited term remaining. Consolidation opportunity.
Life Insurance (Unspecified)
Unknown · General life cover
Largest single premium — personally funded. Prime candidate for RLP replacement.
Family Equity Plan
N/A · Investment/life hybrid
Legacy product — review whether still fit for purpose.
L&G Critical Illness
£25,000 · Critical illness lump sum
Only £25k cover with limited conditions. Significantly below modern standards.
Employment Protection (IP)
£1,433/mo · Income replacement if unable to work
Personally held. Unknown definition — likely not Own Occupation.
Vitality IP & Life with SI
Various · Income protection + life with serious illness
Started July 2025. Personally held — should be business-funded.
MetLife (Broken Bones)
Accident only · Accidental injury cover
Niche product — likely superfluous if comprehensive SIC is in place.
Union Income (Accident)
Accident only · Accidental death payout
Overlaps with MetLife. Consolidation candidate.
Total Monthly Cost (Personal)
£297.18
Paid from post-tax income
Estimated Cost Over 20 Years
£71,323.2
At current premium levels
Potential CT Saving (20 Years)
£13,551.408
At 19% Corporation Tax relief
Relevant Life Plan
Tax-Efficient Life Cover
A Relevant Life Plan (RLP) provides life cover with terminal illness benefit included as a tax-efficient company benefit. Premiums are paid by your limited company as a business expense, qualifying for Corporation Tax relief at 19%. The plan is written into trust, so proceeds are paid tax-free and fall outside of your estate for Inheritance Tax purposes.
Corporation Tax Relief (19%)
Premiums are a legitimate business expense for your limited company. At the current small profits Corporation Tax rate of 19%, the net cost to your business is significantly reduced. Not classified as a benefit in kind — no impact on your personal tax code or P11D.
What This Replaces
A single Relevant Life Plan through your business would replace the following personally-held life policies, consolidating them into one tax-efficient structure:
L&G Life Insurance
£100k mortgage cover
Scottish Widows Life
£110k mortgage cover
Life Insurance (Unspecified)
General life cover
Family Equity Plan
Legacy product
Total Personal Cost
£173.09/moPotential CT Saving (19%)
£32.89/mo savedWhat Does the Relevant Life Plan Cover?
The Relevant Life Plan provides two core benefits — death in service and terminal illness — wrapped in a trust structure that maximises tax efficiency. Below is a detailed breakdown of each element and why it matters specifically for you as a limited company director.
Death in Service
If you were to pass away during the term of the policy, the full sum assured is paid out to the trustees of the discretionary trust. As the plan is written into trust, the proceeds bypass your estate entirely — meaning there is no Inheritance Tax liability and no delay from probate. For your family, this means immediate access to the funds when they need them most.
Why This Matters for You
As a limited company director, you do not have an employer providing death in service benefit. A Relevant Life Plan replaces that cover at a fraction of the cost, paid by your company as a business expense.
Terminal Illness
If you are diagnosed with a terminal illness — defined as a condition where your life expectancy is 12 months or less — the full sum assured is paid out immediately. You do not need to wait. This gives you and your family financial certainty at the most difficult time, allowing you to focus on what matters rather than worrying about money.
Why This Matters for You
Terminal illness benefit is included automatically at no additional cost. The early payout means you can settle financial affairs, clear debts, and provide for your family while you are still here to make those decisions.
Written into Trust
The Relevant Life Plan is automatically written into a discretionary trust. This is a critical structural advantage: the policy proceeds are not part of your estate, so they are not subject to Inheritance Tax (currently 40% above the nil-rate band). The trustees can distribute the funds according to your wishes without waiting for probate.
Why This Matters for You
For limited company directors, the trust structure is essential. It ensures the death benefit reaches your family quickly and tax-efficiently, without being tangled in company or personal estate administration.
No Benefit in Kind
Unlike most company-funded benefits, a Relevant Life Plan is not classified as a benefit in kind by HMRC. This means the premiums do not appear on your P11D, there is no additional National Insurance liability for you or your company, and your personal tax code is unaffected. The premium is simply a business expense — Corporation Tax deductible at 19%.
Why This Matters for You
This is one of the most tax-efficient ways for a company director to arrange life cover. Compared to paying for personal life insurance from post-tax income, the saving is substantial — particularly at the higher rate of income tax.
Business Serious Illness Cover
Vitality 3X — 167 Conditions
Your Current Critical Illness Gap
Your existing L&G Critical Illness policy provides just £25,000 of cover. In the event of a serious diagnosis — cancer, heart attack, stroke — this would cover approximately 2-3 months of your financial commitments. Vitality's Business SIC 3X offers a transformative upgrade: broader conditions, severity-based payouts, and the ability to claim multiple times. All paid by your business with 19% Corporation Tax relief.
167 Conditions Covered
Business Serious Illness Cover 3X covers 167 conditions under the business guide, giving materially broader protection than a standard critical illness plan. Your current L&G CI covers a fraction of these conditions.
Up to Three Opportunities to Claim
With 3X cover, separate claims can be made up to three times the original cover amount, subject to the policy rules and condition definitions. This means a single policy can respond to multiple health events over your lifetime.
Severity-Based Payouts
3X pays across seven severity tiers, from 5% for earliest-stage conditions up to 100% for the most serious diagnoses. This means you do not have to wait for the worst-case presentation to receive financial support.
NHS Waiting List Benefit
For 24 covered surgical procedures, the plan can assess a claim when you are formally placed on an NHS waiting list, potentially creating funds before surgery takes place. This can fund private treatment or cover your costs while waiting.
Severity-Based Payouts
Unlike traditional critical illness plans that only pay out at the most severe stage, Vitality 3X uses a tiered severity system. This means you receive financial support proportionate to the seriousness of your diagnosis — from the earliest treatable stages through to the most severe conditions.
Tier 1
Earliest-stage conditions — e.g. early-stage cancers, minor heart conditions
Tier 2
Low-severity conditions requiring treatment but not immediately life-threatening
Tier 3
Moderate conditions — significant treatment required, recovery expected
Tier 4
Serious conditions — major surgery, extended treatment, significant impact on daily life
Tier 5
Severe conditions — life-altering diagnoses requiring long-term care
Tier 6
Most severe conditions — full payout for the most serious diagnoses
Tier 7
Specified critical conditions — full sum assured paid immediately
NHS Waiting List Benefit
For 24 covered surgical procedures, the plan can assess a claim when you are formally placed on an NHS waiting list. This means you could receive funds before surgery takes place — potentially funding private treatment or covering your costs while waiting.
Conditions That Matter for Your Role
As a lecturer and business owner, certain categories of condition would have a disproportionate impact on your ability to work and earn. Below are the key condition groups, why they matter for your specific role, and how the 3X plan would respond.
Cognitive & Neurological
As a lecturer and business owner, your ability to think clearly, communicate effectively, and manage complex information is fundamental to your livelihood. A neurological condition could prevent you from delivering lectures, managing your business, or making financial decisions.
Scenario
If you were diagnosed with early-stage multiple sclerosis affecting your concentration and speech, a severity-based payout could fund treatment and cover your income while you adapt — without needing to reach the most severe stage before receiving support.
Vision & Sensory
Your role requires reading, preparing materials, presenting to students, and engaging with clients. Any significant impairment to your vision or hearing would directly impact your ability to work.
Scenario
Loss of sight in one eye would make it significantly harder to read, prepare materials, and present effectively. A severity-based payout at the appropriate tier would provide financial support immediately, rather than requiring total blindness.
Cardiovascular
Cardiovascular events are among the most common serious illness claims. Recovery periods are often measured in months, during which you would be unable to lecture, travel, or manage your business operations.
Scenario
A heart attack requiring bypass surgery would mean weeks in hospital and months of recovery. A 3X plan would pay out at the appropriate severity tier immediately, funding your recovery and covering your business expenses while you are unable to work.
Cancer
Cancer is the single most common reason for a critical illness claim. The severity-based approach means you receive financial support from the earliest treatable stages, not just at the most advanced presentations.
Scenario
An early-stage cancer diagnosis — treatable but requiring surgery and chemotherapy — would trigger a severity-based payout. This could fund private treatment, cover your mortgage, and replace your income during treatment without waiting for the condition to worsen.
Dexterity & Musculoskeletal
While less immediately obvious for a lecturer than for a manual worker, your ability to type, write, and physically attend your workplace is essential. A musculoskeletal condition could prevent you from carrying out your daily responsibilities.
Scenario
A condition requiring major organ transplant would mean extended time away from work, with significant recovery periods. The 3X plan would respond with a payout at the appropriate severity level, providing financial stability throughout your recovery.
Total Permanent Disability (TPD)
TPD cover pays out a lump sum if you become permanently unable to work. The definition used determines how easily a claim is assessed. As a non-surgeon business owner, Vitality Business SIC provides Own Occupation TPD — the gold standard.
Own Occupation
Gold StandardYou are considered totally and permanently disabled if you are unable to perform the material and substantial duties of your own specific occupation.
This is the highest standard of TPD definition available. It assesses your ability to do your actual job — not any job, not a similar job, but the specific role you perform.
Why This Matters for You
As a lecturer and business owner, this means the policy would pay out if you could no longer lecture, manage your business, or perform the specific duties of your role — even if you could theoretically do other work.
Examples
Work Tasks
You are considered totally and permanently disabled if you are unable to perform a specified number of work-related tasks from a defined list.
The insurer assesses your ability against a list of functional tasks such as walking, lifting, bending, communicating, and concentrating. If you cannot perform a specified number of these tasks, the benefit is paid.
Why This Matters for You
This definition is broader than Own Occupation but narrower than Activities of Daily Living. It provides a practical assessment of your ability to function in a work environment.
Examples
Activities of Daily Living
You are considered totally and permanently disabled if you are unable to perform a specified number of basic daily activities without assistance.
Activities typically include washing, dressing, feeding, mobility, transferring, and continence. This is the most restrictive definition — it only pays out if you cannot look after yourself at a fundamental level.
Why This Matters for You
This is the minimum standard. It would only pay out in the most severe circumstances, where you are unable to care for yourself. For a professional, this definition alone would leave a significant gap.
Examples
Executive Income Protection
Salary & Dividend Cover
Your Current Income Protection
You currently hold an employment protection policy paying £1,433/month at a cost of £61.38/month from personal income. The definition of cover is unclear — it may not be Own Occupation, and it almost certainly does not cover your dividend income. An Executive IP through your business would replace this with a comprehensive, tax-efficient alternative.
Executive Income Protection is designed specifically for company directors. Unlike personal income protection, it covers both your salary and regular dividend income, is paid by your business as a Corporation Tax deductible expense, and uses the Own Occupation definition — meaning it pays out if you cannot perform your specific role, not just any job.
Own Occupation Definition
The policy pays out if you are unable to perform the material and substantial duties of your own specific occupation. This is the gold standard of income protection — it does not require you to be unable to do any job, only your job. As a lecturer and business owner, this means the policy responds if you cannot lecture, manage your business, or perform your specific role.
Salary & Dividend Replacement
Executive Income Protection can cover both your salary and regular dividend income drawn from your limited company. This is critical for company directors who take a low salary supplemented by dividends — a standard personal IP policy would only cover the salary element, leaving a significant gap.
Corporation Tax Deductible
Premiums are paid by your limited company as a business expense, qualifying for Corporation Tax relief at 19%. The benefit is paid to your company, which then continues to pay your salary and dividends as normal. This maintains your existing tax-efficient remuneration structure.
Total Permanent Disability
L&G provides Own Occupation TPD across all occupation classes. If you become permanently unable to perform your specific role, the policy pays out. This is confirmed for all L&G Executive IP products — giving you the highest standard of protection.
Waiver of Premium
Optional ExtraAvailable as an optional extra. If you are claiming on the policy, the premiums are waived for the duration of the claim. This means your company does not have to continue paying premiums while you are unable to work — the cover continues at no cost.
Key Benefits
How Executive IP Works
Premium Paid
Your company pays the premium as a business expense
CT Relief
Premium qualifies for 19% Corporation Tax relief
Claim Event
If you cannot perform your own occupation, a claim is made
Benefit Paid
Benefit is paid to your company, which continues your salary & dividends
Financial Comparison
The Numbers
Below is a side-by-side comparison of your current position against the proposed restructured portfolio. The financial impact is significant — but the improvement in cover quality is equally important.
Current Personal Cost (20 Years)
£71,323
£297.18/month from post-tax income
Corporation Tax Saving (20 Years)
£13,551
At 19% CT relief on business-funded premiums
Net Cost to Business (20 Years)
£57,772
After CT relief — and zero personal cost to you
Your Personal Cost: £0
By restructuring your protection through your limited company, you eliminate the entire £297.18/month personal cost. That money stays in your pocket. The premiums are paid by your business as a legitimate expense, qualifying for Corporation Tax relief. Over 20 years, that is £71,323 that you no longer need to fund from your personal, post-tax income.
Feature-by-Feature Comparison
| Feature | Current (Personal) | Proposed (Business) |
|---|---|---|
| Paid from | Personal post-tax income | Company as business expense |
| Corporation Tax relief | None — 0% | 19% CT deductible |
| P11D / BIK | N/A (personal) | No P11D — no BIK |
| Inheritance Tax | Proceeds in estate | Written into trust — outside estate |
| Critical illness conditions | Limited (L&G standard) | 167 conditions (Vitality 3X) |
| CI payout structure | Single lump sum — £25k | Severity-based — up to 3X |
| Income protection definition | Unknown — likely not Own Occ | Own Occupation — gold standard |
| IP covers dividends | Unlikely | Yes — salary & dividends |
| Number of providers | 5+ providers | 2 providers (Vitality + L&G) |
| Number of policies | 9+ policies | 3 policies |
| NHS Waiting List Benefit | Not available | 24 procedures covered |
| TPD cover | Not confirmed | Own Occupation TPD |
Monthly Breakdown
Current — Personal Basis
Proposed — Business Basis
All premiums paid by your company. CT deductible at 19%. No P11D. Specific quotes will be provided once we confirm the cover levels you would like to proceed with.
The Case for Acting Now
Why This Matters
Protection is not a product you buy once and forget. It is a financial structure that should evolve with your circumstances. When your current policies were set up, you may not have been a company director. You may not have had the same financial commitments. The products available were materially different from what exists today.
The position now is clear. You are spending £297 per month from personal, post-tax income on a fragmented portfolio of nine policies across multiple providers. Several of those policies overlap. Your critical illness cover is limited to £25,000 — a figure that would barely cover three months of your financial commitments in the event of a serious diagnosis. Your income protection may not cover your dividend income, and the definition of cover may not be Own Occupation.
Every month that passes is another month of premiums paid from the wrong pocket. Over the next 20 years, that is £71,323 paid from personal income that could have been a business expense. The Corporation Tax saving alone — at 19% — amounts to £13,551 over the same period.
But this is not just about tax. It is about having the right cover in place. A Relevant Life Plan written into trust means your family receives the death benefit immediately, outside your estate, with no Inheritance Tax liability. Vitality's 3X Serious Illness Cover means you can claim up to three times, with severity-based payouts from the earliest stages. L&G Executive IP means your salary and dividends are protected with the Own Occupation definition — the highest standard available.
The opportunity is to move from a position of fragmentation, inefficiency, and inadequate cover to one of consolidation, tax efficiency, and comprehensive protection. Three policies. Two providers. One coherent structure. All running through your business.
The question is not whether this makes sense. The question is how quickly we can put it in place.
What Happens Next
Next Steps
Review This Recommendation
Take your time to review the information on this page. Understand the opportunity, the products, and the financial impact. Make a note of any questions.
Ask Any Questions
Before our next meeting, reply to Jordan with any questions or areas you would like to discuss further. No question is too small.
Confirm Your Preferences
Once you are comfortable with the approach, let us know which cover levels you would like to explore. We will obtain specific quotes tailored to your requirements.
Application
We handle the application process, including any medical underwriting. We liaise with the providers on your behalf to ensure a smooth process.
Policies Live & Trust Setup
Once your new policies are in force, we arrange the trust documentation for the Relevant Life Plan and confirm the cancellation of your existing personal policies.
Get in Touch
Rated Excellent on Trustpilot
View all reviewsOutstanding service from Jordan
Jordan Tomlinson at Broadbench provided an exceptional service. He took the time to understand my specific circumstances as a surgeon and structured a protection package that was both comprehensive and tax-efficient. The recommendation page he prepared was incredibly detailed and made the whole process transparent.
Kirana Arambage
April 2026
Professional and thorough
I was impressed by the level of detail and professionalism throughout the process. The team at Broadbench clearly know their stuff when it comes to protection for company directors. They identified significant tax savings I had no idea were available to me.
James Richardson
March 2026
Highly recommended for business owners
As a business owner, I had no idea how much I was overpaying for protection by funding it personally. Broadbench restructured everything through my company, saving me thousands over the term. The whole process was smooth and well-explained.
Sarah Mitchell
February 2026
Excellent advice on critical illness cover
The Vitality 3X product that Broadbench recommended was a significant upgrade on my previous critical illness policy. The severity-based payouts and multiple claim opportunities give me much greater peace of mind. Jordan explained everything clearly.
David Thompson
January 2026
Tax savings I didn't know existed
Broadbench identified that all my protection was being paid from personal income when it could have been running through my limited company. The Corporation Tax savings alone made the switch worthwhile, and the cover is significantly better too.
Emma Clarke
December 2025