Business protection

Business Life Insurance Options

Flexible protection solutions for business

This policy offers a choice of life cover, or life and critical illness cover for public and private limited companies, limited liability partnerships, individual partners of a partnership, and sole traders. A range of additional options are also available.

Choice of covers

Life cover or life and critical illness cover – with renewal and conversion options and other options like increasing cover and total permanent disability

£1 million free cover

Free life cover of £1 million during the application process through our Business Protection Promise

Range of trust options

Helping to provide a tax-efficient cover solution

Product details

Why Business Life Insurance Options?

Our Business Life Insurance Options is designed to adapt to the needs of a wide range of clients. As such, there are various choices you’ll need to help your client make to ensure they’re getting the best policy. As always, we’re here to give you all the support and help you need.

  • Cover available for public and private limited companies, limited liability partnerships, individual partners of a partnership and sole traders - with premiums from as little as £5 a month
  • Clients choose the policy term and the cover amount - which can be paid as a lump sum or in annual instalments
  • Level cover or decreasing cover available, with selectable interest rates to match a business loan
  • Options available: increasing cover, waiver of premium, total permanent disability, conversion and renewal options
  • Specialist team of financial and medical underwriters - plus an online 'virtual underwriter' for immediate decisions
  • Free life cover of £1 million during the application process through our Business Protection Promise 
  • Straightforward claims process backed by our dedicated UK-based claims team

Please note that Business Life Insurance Options provides cover only and has no cash-in value at any time.

For more information, please read our Business Life Insurance Options policy summary

Cover details

There are two types of cover to chose from:

  • Level cover - for key person protection and shareholder and partnership protection. The cover amount stays the same throughout the life of the policy and is payable as a lump sum - unless the instalment option is chosen, where the lump sum can be split into equal yearly installments over 2, 3, 4, or 5 years
  • Decreasing cover - for Business Loan Protection. The cover amount decreases each month, broadly in line with a decreasing loan using a fixed interest rate. Your client can choose a rate between 4% and 18%. The cover amount is payable as a lump sum.

Life cover premiums are guaranteed for the duration of the policy. Premiums for life and critical illness cover can be guaranteed or reviewable.

  Life cover Life and critical illness cover

Maximum age

89 at entry

Cover must end before 91st birthday

 

64 at entry

For guaranteed premiums, cover must end before 76th birthday

For reviewable premiums, cover must end before 91st birthday

 

Minimum term

1 year (or 5 years with the conversion, renewal or increasing-cover options)

 

1 year (or 6 years for reviewable premiums)

Maximum term

50 years

(subject to maximum age above)

 

50 years

(subject to maximum ages above)

 

Minimum premium

 

£5 a month/£50 a year

£5 a month/£50 a year

Cover limit

Level cover - no maximum

Increasing cover - £5 million

£3 million (or £2 million with the total permanent disability option)

 

Cover options

The following options are also available, with Business Life Insurance Options:

 

Conversion option - for life cover only. Before age 65, your client can convert their original policy to a new whole of life policy without any further medical questions being asked.

They can use this option any time before their policy ends as long as they haven’t made (or aren’t in a position to make) a claim for the death benefit, terminal illness benefit or waiver of premium benefit). The cover amount must be less than or equal to the original policy value, and must end before the life covered reaches age 71.

 

Renewal option - before age 65, your client can can renew their cover on the policy end date without any further medical questions being asked.

They can use this option any time before their policy ends as long as they haven’t made (or aren’t in a position to make) a claim for the death benefit, terminal illness benefit or waiver of premium benefit). The cover amount and term of the new policy cannot exceed that of the original policy and must end before the life covered reaches age 71.

 

Increasing cover option - this is available on level cover for clients up to age 85 (although the policy can continue until the client reaches 90). Your client’s cover will increase each year without the need to answer any medical questions. They can choose increases of 3%, 5% or in line with the Retail Prices Index (RPI).

Premiums will increase each year by 1 and a half times the cover increase - so, for example, a 3% rise in cover would increase the premium by 4.5%. If the RPI-linked option is chosen and RPI is zero or negative, there’ll be no change to cover or premiums that year.

 

Waiver of premium - if your client is younger than 65 they can choose this option where we'll pay their premiums if the life covered meets our definition of incapacity. We offer deferred periods of 1, 3 and 6 months.

We’ll use the own occupation definition of incapacity - unless the life covered stopped performing any occupation more than 12 months before the start of the incapacity, when we’d use the activities of daily working definition. For us to carry on paying your client's premiums, we’ll need evidence that the incapacity is continuing. The policy must end before the life covered’s 71st birthday.

 

Total Permanent Disability - available on life and critical illness cover only, the cover amount is paid if your client meets our definition of total permanent disability. The maximum age at entry is 64 and the policy must end before the life covered’s 71st birthday.

 

Instalment Option - cover amount paid in equal yearly instalments over 2,3,4 or 5 years. The instalment option cannot be removed if taken. Available with level cover only.

 

Charges

There are no additional charges for your client to pay. All charges for our Business Life Insurance Options policy are included in their premiums.

Client suitability

Business Life Insurance Options is designed for businesses with creditors and who want cover for a specific term:

  • Key person - businesses that want to protect against the financial consequences of the death of a key person, usually someone that has specific expertise or is otherwise central to the running of the business
  • Shareholder protection - businesses that want to protect against the financial consequences of the death of a shareholder or partner. It could also be useful if your client has financial dependants
  • Business loan - businesses that want to help protect the repayment of a mortgage or loan, should a shareholder or partner die. It’s also useful if your client has financial dependants or they want cover that decreases over the term of the policy

It’s unlikely to be suitable for clients who want:

  • An investment-linked arrangement
  • Whole of life protection
  • Cover with a cash-in value

Things to consider:

  • Level of cover required
  • Existing levels of cover
  • Their current health
  • Any financial liabilities they may have
  • Succession planning

Possible alternatives:

  • Self-insurance using existing assets
  • Whole of life policy

Additional critical illness benefit

Our critical illness cover includes additional critical illness benefit as standard.

We pay the lower of £25,000 or 25% of the cover amount for the following critical illnesses:

  • Carcinoma in situ of the breast - requiring surgery to remove the tumour
  • Low-grade prostate cancer - with specified treatment   

We pay the lower of £20,000 or 20% of the cover amount for the following critical illnesses:

  • Arteriovenous malformation (AVM) of the brain - with specified treatment
  • Bladder removal
  • Carcinoma in situ of the cervix - requiring treatment with hysterectomy
  • Carcinoma in situ of the testicle - requiring surgical removal of one or both testicles
  • Cerebral aneurysm - with specified treatment
  • Crohn's disease - treated with intestinal resection
  • Non-malignant pituitary tumour - with specified treatment
  • Removal of an eyeball
  • Ulcerative colitis - treated with total colectomy 

After we've paid a claim for additional critical illness, the policy will continue.

Quote, apply and track cases online

Both of our business protection products are available on ALPS, and you can apply for them both at the same time. 

Visit ALPS

Business support

Doing protection business just got easier

We're committed to making it easy to do protection business with us, so we've produced a range of helpful support materials - all designed to save you time.

ALPS tracking guide

Knowing exactly what’s happening with your cases makes life so much easier. Take a look at our e-guide to learn how tracking can help your business.

ALPS in focus guide

Gain knowledge on what ALPS has to offer you, whilst discovering some of the tips and tricks that could save you time. 

Underwriting centre

Our digital hub contains everything you need to know about our underwriting.

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