Your Most Important Asset?

Like most people you probably insure your possessions - replacing them could be extremely expensive. Your personal belongings, the contents of your home, your car, your house, are probably all insured. But what about your most valuable asset?

The source of our income is probably the most important asset that we all possess. Without it, our entire lifestyle is at risk. And one of the biggest threats to our ability to work is our health – something that most of us take for granted.

Yet the likelihood of suffering from a long term illness or injury is more likely than you might imagine, and could have serious consequences for your Business – and the security of those who depend on you.

As a business and personal protection specialist I believe it’s vitally important that for individuals that run their own businesses that they look to protect their earning ability through income protection.

In most cases income protection is setup by the individual however you can get your company to take out the cover for you and make the contributions, setting it up this way will achieve the following benefits.

Premiums can be offset against corporation tax; benefits are taxed as a trading receipt

Cover can be arranged for up to 80% of the employee’s gross earnings, including an average of dividends paid in the last three years, where directly linked to the employee’s own performance

Benefit is paid direct to the employer. It can then be passed on to the employee through PAYE or retained to support the business

If anyone wishes to get more knowledge on protecting their income then I would be more than happy to email across a Consumer Guide to Income Protection or simply answer any further questions.

michael.cooke@themoneyhelper.co.uk

If you’re still not convinced then here are some facts and figures.

Over 2.4 million people are currently claiming State Incapacity Benefit *1

Over 2.1 million claimants have been claiming for over 6 months and 81% of those claimants have been claiming for over 2 years *1

Claimants between the ages of 35 and 44 account for the greatest number of claimants and new claimants *1

Musculoskeletal disorders and stress were the most commonly reported illness type in these cases *2

According to the Health and Safety Executive an average of 3,000 people per week begin a period of sickness that will last at least 6 months *2

According to the Office of National Statistics the average family spends £456 per week *3

Most claimants on the new Employment and Support Allowance will be expected to receive £89.80 per week *4


*1/ Department of Work and Pensions – February 2008
*2/ Health and Safety Executive – 2005
*3/ Office of National Statistics – Family Spending Survey 2007
*4/ Department of Work and Pensions – November 2008