ConfidentialYour Protection Recommendation
Business
Protection
for You, Your Business & Your Shareholders
Adam Bennett
Director · Ken Parke Planning Consultants Limited
Planning & Development Consultancy
Recommendation
Your Protection Update
Dear Adam,
Thank you for your patience while we worked through the underwriting process for your business protection policies through Ken Parke Planning Consultants Limited. I wanted to provide you with a clear update on where we stand with each application and outline the next steps.
We applied for three types of cover through KPPC Ltd: a Relevant Life Plan, Shareholder Protection, and Key Person Critical Illness Cover. The good news is that both the Relevant Life Plan and Shareholder Protection have been accepted by Legal & General, albeit with an increase in premiums due to the underwriting assessment. Your colleague Kathryn Burdett has been accepted on standard rates across all of her policies.
Unfortunately, the Critical Illness element was declined by Legal & General. However, we have secured an alternative offer from Royal London under their Business Menu Plan, which provides Life or Critical Illness Cover as a Key Person policy. Royal London have offered terms with a 125% rating, and I have included three cover level options for you to consider on this page.
This page walks through each policy in detail, including the revised premiums, the tax efficiency through your limited company, and the Royal London alternative. I would recommend accepting and activating the Legal & General life policies promptly, and then completing a further medical application with me for the Royal London cover.
Tom Hitchcock
Director · Protection Adviser
Broadbench Ltd
Application Summary
Underwriting Outcomes
A summary of the underwriting decisions for each policy applied for through Ken Parke Planning Consultants Limited on behalf of Adam Bennett.
Relevant Life Plan
Legal & General
Accepted — Premium Increase
Your Relevant Life Plan has been accepted by Legal & General with an increase in premium. The policy provides life cover with terminal illness benefit, written into trust and paid as a tax-efficient business expense by KPPC Ltd.
Shareholder Protection
Legal & General
Accepted — Premium Increase
Your Shareholder Protection policy has been accepted by Legal & General with an increase in premium. This protects the business and remaining shareholders in the event of your death during the policy term.
Key Person Critical Illness
Legal & General
Declined
The Critical Illness element was declined by Legal & General. We have secured an alternative offer from Royal London, detailed in Section 05 below.
Kathryn Burdett — All Policies Accepted on Standard Rates
Kathryn Burdett's applications for the same suite of policies — Relevant Life Plan, Shareholder Protection, and Key Person Critical Illness Cover — have all been accepted by Legal & General on standard rates with no premium increases or exclusions. These policies are ready to be activated alongside yours.
Relevant Life Plan
Tax-Efficient Life Cover
Your Relevant Life Plan provides life cover with terminal illness benefit, paid by Ken Parke Planning Consultants Limited as a business expense. The plan qualifies for Corporation Tax relief at 19% and is written into trust, so proceeds are paid tax-free and fall outside your estate for Inheritance Tax purposes.
Corporation Tax Relief (19%)
Premiums are a legitimate business expense for KPPC Ltd. 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.
What 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 breakdown of each element and why it matters for you as a director of KPPC Ltd.
Death in Service
If you were to pass away during the term of the policy, the full sum assured of £750,000 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 Business Owners
As a director of KPPC Ltd, you do not have employer-provided death in service benefit. This Relevant Life Plan replaces that cover at a fraction of the cost, paid by your company as a legitimate 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.
Why This Matters for Business Owners
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. 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 Business Owners
For directors running limited companies, 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 KPPC Ltd, and your personal tax code is unaffected.
Why This Matters for Business Owners
The premium is simply a business expense — Corporation Tax deductible at 19%. Compared to paying for personal life insurance from post-tax income, the saving is substantial.
Accepted Terms
£750,000
34 years (indexed) · Legal & General
Offer valid until 13 June 2026. Premium includes +125% loading applied during underwriting.
Key Person Critical Illness
Royal London Alternative
Legal & General — Critical Illness Declined
Legal & General declined the Critical Illness element of your application. Their decision explanation stated:
"As a result of this information, we're aware that your Body Mass Index (BMI) is outside of the range that's considered healthy. Your health screen reported the following: height 176cm, weight 116kg. Your blood pressure was slightly raised and your cholesterol profile was outside of the normal range."
The life element was accepted with a +125% rating for the lipid profile (including HDL and triglycerides) and a minimal rating for blood pressure (home BP reading of 124/78).
Royal London — Cover Available
We approached Royal London as an alternative provider. They have offered Life or Critical Illness Cover under their Business Menu Plan with a 125% rating. Total Permanent Disability (TPD) is not available for medical reasons. This policy provides a lump sum if you are diagnosed with a critical illness that meets their definition, or if you die during the policy term — whichever occurs first. The policy runs to age 51 and is designed as Key Person cover through KPPC Ltd.
Key Person Cover — Business Menu Plan
Royal London · Ref: PSTW976180 · To Age 51 · 125% Rating
Non-standard terms: A 125% rating has been applied. TPD is not available for medical reasons. The policy pays out once — on critical illness diagnosis or death, whichever occurs first.
£300,000
Life or Critical Illness · To Age 51
£400,000
Life or Critical Illness · To Age 51
£500,000
Life or Critical Illness · To Age 51
What Conditions Are Covered?
Royal London's Business Menu Plan covers over 60 critical illnesses. Below are the key condition groups most relevant to you as a male planning consultant and director of KPPC Ltd.
Cancer
All cancers including prostate cancer, bowel/colo-rectal cancer, skin cancer, lymphoma, leukaemia, kidney cancer, lung cancer, testicular cancer
Relevance for You
Cancer accounts for 63.8% of all critical illness claims paid by Royal London in 2024. For men, prostate cancer (22%) and bowel/colo-rectal cancer (18%) are the most common. At age 35, early detection and treatment funded by a CI payout can make a significant difference to recovery and financial stability.
Cardiovascular
Heart attack, stroke, coronary artery bypass, cardiomyopathy, aortic surgery, heart valve replacement or repair, cardiac arrest, pulmonary hypertension
Relevance for You
Heart attack and stroke together account for 18.5% of CI claims. The average age for a heart attack claim is 54 and for stroke is 51 — both well within your policy term to age 51. A lump sum payout provides financial breathing room during recovery.
Cognitive & Neurological
Stroke, multiple sclerosis, Parkinson's disease, motor neurone disease, benign brain tumour, dementia, encephalitis, coma, traumatic brain injury
Relevance for You
Neurological conditions can have a profound impact on your ability to work as a planning consultant, where analytical thinking, report writing, and client communication are central to your role. Multiple sclerosis claims average age 44.
Other Covered Conditions
Blindness, deafness, kidney failure, liver failure, major organ transplant, loss of limbs, third degree burns, severe mental illness, paralysis of limbs
Relevance for You
Royal London covers over 60 critical illnesses. The breadth of cover means that even less common conditions that could prevent you from working are included in the policy.
Claims Statistics
Royal London 2024 Claims Data
Royal London is one of the UK's largest mutual life insurance providers. Their 2024 claims report demonstrates a strong track record of paying claims when customers need them most.
98.7%
of all protection claims paid
2024
£751m
paid to customers in 2024
65,385 claims
89.7%
of critical illness claims paid
2,675 CI claims in 2024
£15.4m
paid in business protection claims
Avg payout: £335,723
Most Common Critical Illness Claims
| Condition | % of Claims | Total Paid | Avg Age |
|---|---|---|---|
| Cancer | 63.8% | £91.6m | 51 |
| Heart Attack | 9.8% | £15.4m | 54 |
| Stroke | 8.7% | £13.3m | 51 |
| Multiple Sclerosis | 2.5% | £3.4m | 44 |
| Benign Brain Tumour | 2.2% | £3.7m | 46 |
| Heart Valve Repair | 1.8% | £3.4m | 53 |
| Parkinson's Disease | 1.5% | £2.9m | 56 |
Most Common Male Cancer Claims
40% of males who claimed for cancer with Royal London in 2024 were diagnosed with prostate cancer (22%) or bowel/colo-rectal cancer (18%). All of these cancers are covered under the Business Menu Plan.
Relevant to You: Age 35–39 Business Protection Claims
In 2024, the 35–39 age bracket accounted for £5.9 million in business protection claims with Royal London — the highest of any age group. The average business protection claim payout was £335,723, with the largest single claim at £2.6 million. These figures underscore the importance of having key person cover in place during the most productive years of your career.
Next Steps
What Happens Now
There are three clear actions to take. The first is to accept and activate your Legal & General life policies (and Kat's). The second is to book a meeting with me to complete the Royal London medical application. The third is to confirm your preferred cover level once the application is processed.
Accept & Activate Legal & General Policies
Confirm acceptance of both the Relevant Life Plan (£101.12/mo) and Shareholder Protection (£55.21/mo) with Legal & General. These offers are valid until 13 June 2026. Once accepted, your cover will begin on the date you specify.
Both your policies and Kathryn Burdett's policies are ready to activate.
Book Your Royal London Medical Application
To proceed with the Royal London Key Person Critical Illness Cover, we need to complete a further medical application together. Please book a convenient time using the link below and I will guide you through the process.
This is a separate application to Royal London — it does not affect your L&G policies.
Review & Confirm Cover Levels
Once we have completed the Royal London application, review the three cover level options (£300k / £400k / £500k) and confirm which level you would like to proceed with. I am happy to discuss the options and help you decide.
All premiums are paid by KPPC Ltd and qualify for Corporation Tax relief at 19%.
Or contact Tom Hitchcock directly: [email protected] · 01202 978663
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