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Executive PHI

PHI is designed to provide long term income replacement in the event of accident and sickness. Benefits are paid to normal retirement date and commence after a chosen deferred period e.g. 3 months. The policy is effected by an employer in line with defined maximum benefits being:

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75% of life insured’s income to £50,000

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one third of earnings above £50,000

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one quarter of salary to cover pension / NI contributions

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Maximum aggregate benefit limit £10,000

The taxation parameters are:

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premiums are allowable as a business expense

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provision of cover is not taxable as a benefit in kind to the employee

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benefits are paid to the employer and are taxed as a trading receipt

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benefits paid by employers to employees are taxed as earned income

Care should be taken in ensuring that policies have guaranteed versions, have a choice of deferred periods and the disability definition meets situation requirements.

Either complete our General Enquiry Form or e-mail us for further information

  

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Last modified: 12/08/09