Need comprehensive health cover - maybe through Ltd?

**SueEllen** · 16 April 2011, 13:45

In terms of the list of the insurances you mentioned some of them overlap so you should really decide what you need. The best summaries I have read have come from advisers who use the moneysavingexpert.com forums.

Also some of the insurances that you have mentioned i.e. income protection has to be brought via an IFA. However you can use Cavendish Online who are an execution-only IFA.

Finally one of the accountants should be along soon to say whether it's worth you paying it personally or through the company.

**contractor79** · 16 April 2011, 13:48

Thanks SueEllen. I used to have an income protection policy through Dentist and General. However, you can only claim for it if you are actually working. It became too much of a chore to stop and start premiums as contracts were stopping and starting.

**contractor79** · 16 April 2011, 13:52

Perhaps a 6-month deferred IP would be better. Although I am not sure if there are ones which suit contractors who are in and out of work. No point having one which you can only claim for only when on a contract. What if you got long term sick when not working? Then you have to live on your savings until they run out then state benefits. How would your mortgage be paid then?

**SueEllen** · 16 April 2011, 14:04

Originally posted by contractor79 View Post

Thanks SueEllen. I used to have an income protection policy through Dentist and General. However, you can only claim for it if you are actually working. It became too much of a chore to stop and start premiums as contracts were stopping and starting.

If you are the director/company secretary of a limited company as well as the company's employee, as long as you pay yourself a salary when you aren't in a contract then legally you are still in employment.

Unfortunately it's a case of reading the small print to confirm they don't exclude company directors/company secretaries in this situation.

BTW Dentist and General now have a self-employed Income Protection Micro site. This may not be the best as other insurers should insure you as above.

Also the PCG has advice on insurances you should consider and what they cover. Just google "PCG insurance". (The url is long and messy.)

**Mr.Whippy** · 16 April 2011, 14:07

I have an income protection plan with Unum. As standard it doesn't include cover if you're not working but that level of cover can be added for extra premium, but that refers to being in "paid occupation" which you are if you still pay yourself....

The policy I have is designed for one-man ltd co's. and is paid for through the company... although if you do claim, you then have to pay tax personally on the income it provides.

**contractor79** · 16 April 2011, 14:28

thanks, yes I'm looking for an IP that you can claim on in the downtime, I don't pay myself when I'm not working on a contract

**Mr.Whippy** · 16 April 2011, 14:46

This is the policy that I was recommended by my IFA.

**Clare@InTouch** · 16 April 2011, 15:41

With most policies your company can pay them but they will be a benefit in kind. In those cases it's often easier to just pay them personally.

There are some policies I've heard of that can be paid without a BIK, but an IFA would be able to advise on them further.

**contractor79** · 20 April 2011, 22:46

Hmm, well I've investigated further and have found that these Income Protection policies do not pay out if you're inbetween contracts and not paying yourself a salary.

Perhaps an alternative is to get critical illness cover to the value of your mortgage, then personal accident cover which may cover you for temporary sickness too. These don't depend on you having to work and pay yourself salary & divs.

IP has too many conditions attached to be worthwhile, it seems.

I'm quite happy to pay insurances worth up to £1000/year through my ltd company then up to £1000/year personally.

Need comprehensive health cover - maybe through Ltd?