• The policy ensures that any loan taken out is paid in full in the event of death of the director or Keyperson.
• The policy provides cover for the term of the loan.
• Premiums can be paid directly from the limited company’s bank account.
• No tax implications for the director or the business.

• Once the loan has been paid off, the business can continue to operate without any liabilities.
• Owners of SPV (Special Purpose Vehicle) companies that have purchased Buy-To-Let properties can use the product to ensure there is no future remortgaging required as the property will be owned outright.

• Keyperson insurance protects the business against the financial loss of losing a key individual. The benefit is paid to the business but there are tax implications on the premiums paid.
• Shareholder protection provides the surviving owners of a business with the proceeds to purchase the deceased or critically ill owner’s share in the business. The benefit is paid into trust and proceeds are then used by the surviving shareholders to buy back the shares of the deceased shareholder.
• Relevant Life insurance is a tax effective way for an employer to provide life cover to an employee with the benefit paid to the employee’s family. The premiums are tax allowable for the business to pay and no P11D implications on the employee.

The proceeds from a Business Loan protection plan is paid directly to the business to help pay off the loan in its entirety.

None! Put simply, a Business Loan Protection policy has no tax implications to the director’s who are insured, the premiums paid do not have a ‘Benefit-in-Kind’ implication and the payout is free from tax for the business! (Source: L&G Business Protection Guide W13591 06/18)

The business owns the plan, and the policy is set up on the life of the key person, i.e., the person who took out the loan.

Are you looking for advice or guidance? If you’re unsure whether Business loan protection fits your business needs, speaking to our professional team is the place to start. We can advise on the best insurance and protection packages that suit your business, and our transparent approach means you know exactly where you stand with our service. Why not get a meeting penciled in with the WIS team today?