Legal & General (L&G) has introduced an immediate cover facility on business protection cases, along...
Legal & General (L&G) has introduced an immediate cover facility on business protection cases, along with the option of a company receiving any policy pay-outs as installments over two, three or five years. It is available for life with critical illness cover between £100,000 and £500,000 of the sum assured. For life cover only it is available up to £2m.
The immediate cover facility requires the first month's premium along with the completed application form. L&G has designed the immediate protection to be appropriate for use in keyperson loss of profits, keyperson loans, partnership and directors share protection and for use in management buy-out situations. The period of immediate cover is 30 days.
Ronnie Martin, protection director at Legal & General, said: 'This facility can be useful for IFAs where cover is required immediately. For example, if a loan is being taken out for development purposes, where quick cover may be required, or a management buy-out situation where once a deal has been struck, cover is required instantly.'
The installment option meanwhile has been introduced to help companies operate as tax efficiently as possible.
Martin said: 'If a company elects to be paid in installments at the outset, when the policy is being arranged, then it can be very tax efficient. This facility is not available retrospectively, after cover has been put on risk, as that could be seen as tax evasion. But there is the option of reverting to a lump sum from the installment option at the point of any policy paying out.'
