Confidential Recommendation
Protection
Review
Ayres Consulting Limited
Prepared for Johanna Stuart, Programme Manager
Prepared by Mike Cooke · Broadbench · April 2026
Dear Johanna,
Thank you for taking the time to discuss your protection arrangements. It was good to hear that you are back contracting as a Programme Manager within the NHS and that the business is going well. Given the change in your circumstances since we last spoke, a review of your overall protection strategy is exactly the right thing to do.
You currently have an Increasing Executive Income Protection policy with Legal & General, which we arranged in December 2022. This is a quality product and has served you well. However, as part of this review, I wanted to explore whether a different style of cover might deliver better overall protection for both you and the business.
As the sole fee earner within Ayres Consulting, if you are unable to work, the company's revenue drops to zero immediately. There is currently no critical illness cover in place at all, and no provision for the company to continue meeting its obligations during a period of incapacity.
I have prepared two alternative options for you to consider — both designed to protect your income, the business turnover, and provide a critical illness lump sum. The key difference between them is whether you keep the existing Executive IP or replace it with a hybrid Key Person arrangement that combines a higher monthly income benefit with a lump-sum critical illness payout.
Option A
Keep Executive IP + Add CI
Retain the existing policy and layer on Key Person Critical Illness cover
Option B — Hybrid
Key Person IP + Key Person CI
Replace Executive IP with Key Person IP and add Key Person CI — a higher-benefit hybrid package
Your Existing Cover
Executive Income Protection
Your existing policy with Legal & General pays a monthly benefit to Ayres Consulting if you are unable to perform your own occupation due to illness or injury. The benefit and premium increase each year with RPI. Here is a summary of the current position:
Legal & General — Increasing Executive IP
In force since December 2022
Current Monthly Premium
£121.41
Indexed from £94.95
Current Monthly Benefit
£1,574.34
Indexed from £1,333
Deferred Period
4 weeks
Policy Term
To age 67
~11 years remaining
Benefit Duration
Full term
Pays until recovery or age 67
Incapacity Definition
Own occupation
Highest standard
Policy strengths: Own-occupation definition, RPI indexation, 4-week deferred period, full-term benefit duration (to age 67), waiver of premium during claim. This was underwritten at age 52 in good health — terms that would be difficult and more expensive to replicate today.
Gap Analysis
Where the Gaps Are
As the sole revenue generator for Ayres Consulting, there are several financial exposures that are currently unprotected — regardless of which option you choose.
| Risk | Monthly Exposure | Currently Covered? |
|---|---|---|
Personal income replacement Executive IP pays £1,574.34/month | £4,167 | Partial |
Business overheads during incapacity Accountancy, insurance, subscriptions, etc. | ~£2,667 | Not Covered |
Pension contributions during incapacity Company pension contributions would cease | £1,500 | Not Covered |
Lump sum on critical illness diagnosis No CI cover of any kind | £100,000+ | Not Covered |
Business disruption / replacement costs Cost of hiring interim resource | Variable | Not Covered |
The most significant gap is the complete absence of critical illness cover. If you were diagnosed with cancer, suffered a heart attack or stroke, there would be no lump sum available — either to the business or to you personally. Both options below address this.
Option A
Keep Executive IP + Add Critical Illness
Retain your existing income protection and layer on a lump-sum CI policy
Under this option, you keep the Legal & General Executive IP in place and add a separate Key Person Critical Illness policy through VitalityLife. The Executive IP continues to protect your income during periods of incapacity, while the CI policy provides a lump sum to the business on diagnosis of a critical illness.
New Policy
Key Person — Business Serious Illness Cover 3x
VitalityLife · Business Protection · Up to 300% Cover
Sum Assured
£100,000
Term
To Age 70
Monthly Premium
£198.53
£160.81 net of 19% CT
Key Features
Multiple claims up to 300% of cover (£300,000 total potential)
Severity-based payouts — earlier-stage conditions trigger claims
Lump sum paid directly to Ayres Consulting Limited
Premiums are a deductible business expense — 19% CT relief
Option A — Total Monthly Cost
Executive IP (existing)
£121.41
+ Key Person CI (new)
£198.53
Total Gross Monthly
£319.94
£259.15 net of CT
Option B — Hybrid
Key Person IP + Key Person CI
This option replaces the existing Executive IP with a Key Person Income Protection policy and adds Key Person Critical Illness cover. Both policies are paid for by Ayres Consulting and protect the business directly. This is a hybrid approach — combining a significantly higher monthly income benefit with a lump-sum critical illness payout in a single coordinated package.
Under this option, you cancel the existing Executive IP (saving £121.41/month) and replace it with two Key Person policies. The Key Person IP pays a fixed £5,000 per month to the company during your incapacity — more than three times the current Executive IP benefit — and the CI policy provides a lump sum on diagnosis. The tax position is identical to the Executive IP: both are paid by the company, both are deductible for corporation tax, and both pay the benefit to the business.
Key Person — Income Protection
Legal & General · Business Protection
Monthly Benefit
£5,000
Benefit Period
24 Months
Monthly Premium
£138.92
Net of CT
£112.53
Fixed £5,000/month — over 3x the current Executive IP benefit
Covers business overheads, pension contributions, and fixed costs
Own-occupation definition of incapacity
24-month maximum benefit period per claim
Key Person — Business Serious Illness 3x
VitalityLife · Business Protection
Sum Assured
£100,000
Term
To Age 70
Monthly Premium
£198.53
Net of CT
£160.81
Multiple claims up to 300% of cover (£300,000 total potential)
Severity-based payouts — earlier-stage conditions trigger claims
Lump sum paid directly to Ayres Consulting Limited
Pays a lump sum on diagnosis of a qualifying condition
Option B — Total Monthly Cost
Key Person IP
£138.92
Key Person CI
£198.53
Less: Executive IP cancelled
−£121.41
Net Change in Premium
+£216.04
£337.45 gross / £273.33 net of CT
Note: The Key Person IP benefit amount can be scaled down to reduce the premium if preferred. For example, reducing the benefit to £3,000/month would lower the IP premium proportionally while still providing meaningful business protection.
Comparison
Option A vs Option B
The table below compares both options across the key factors. Each has its merits — the right choice depends on how you weigh long-term benefit duration against the significantly higher monthly payout of the hybrid approach.
| Feature | Option A Keep Exec IP + Add CI | Option B — Hybrid KP IP + KP CI |
|---|---|---|
| Income protection monthly benefit | £1,574.34 (Executive IP) | £5,000 (Key Person IP) |
| Income protection duration | Full term to age 67 (~11 years) | 24 months per claim |
| Critical illness lump sum | £100,000 (up to £300k) | £100,000 (up to £300k) |
| Tax position | CT deductible / taxable as trading income | CT deductible / taxable as trading income |
| Benefit paid to | Business (Exec IP) + Business (CI) | Business (KP IP) + Business (CI) |
| Re-underwriting required | CI only (health unchanged since 2022) | Both IP and CI (health unchanged since 2022) |
| Total gross monthly premium | £319.94 | £337.45 |
| Net monthly (after 19% CT) | £259.15 | £273.33 |
Key Trade-Off
Option A gives you longer-term income protection (to age 67) but at a lower monthly benefit of £1,574.34. Option B gives you a significantly higher monthly benefit of £5,000 — enough to cover your income, business overheads, and pension contributions — but is limited to 24 months per claim. Both options include the same critical illness cover, and the tax position is identical. The additional cost of Option B over Option A is just £17.51 per month gross (£14.18 net of CT).
Independent Verification
CIExpert Market Analysis
CIExpert is an independent research tool used by financial advisers to objectively compare the quality of critical illness policies. It scores every condition, every payout tier, and every additional benefit — producing a single quality index that allows direct, like-for-like comparison across the market. The analysis below compares the recommended Vitality policy against Legal & General, the next-highest-ranked alternative.
Recommended
Vitality SIC 3X
Adult Only Policy
18,481
Quality Index Score
50 preferential conditions
3 silver preferential conditions
£198.53/month
Pays out up to 3 times (£300,000 total)
Comparison
Legal & General
+ Adult Extra Policy
18,506
Quality Index Score
61 preferential conditions
1 silver preferential condition
Pays out once only (£100,000 max)
Includes life insurance rider — tax implications
Full Market Ranking
| Provider | Policy | Quality Score |
|---|---|---|
| Legal & General | + Adult Extra | 18,506 |
| VitalityLifeRecommended | SIC 3X — Adult Only | 18,481 |
| Royal London | Standard — Adult Only | 18,480 |
| LV= | Enhanced + Standard Child | 18,047 |
| Zurich | Business Only — Select | 17,862 |
| Aviva | Business Only | 17,044 |
Why Vitality Over Legal & General
The quality scores are virtually identical — a difference of just 0.13%. On pure condition coverage, the two policies are comparable. However, there are two decisive factors that make Vitality the stronger choice for your situation:
Triple Payout — Up to £300,000
Vitality SIC 3X can pay out up to three times the sum assured across separate qualifying conditions — a potential total of £300,000. Legal & General pays once only, for a maximum of £100,000. For a sole director whose business depends entirely on her ability to work, the difference between a single payout and three is significant.
Cleaner Tax Position — No Life Insurance Rider
Legal & General's policy includes a built-in life insurance rider. While this may seem like a bonus, it complicates the tax position. Under HMRC guidance (BIM45525), a key person policy must be "wholly and exclusively" for trade purposes to qualify for corporation tax relief. A policy that also pays out on death could be argued to have a dual purpose — weakening the CT deductibility case. Vitality's SIC 3X is a pure critical illness policy with no life element, making the tax position cleaner and more defensible.
Source: CIExpert Assessment Report CIE537404, 21 April 2026. Scenario: female non-smoker age 55, £100,000 level cover for 15 years, no children's cover. The full CIExpert report is available in the supporting documents section below.
Reference Material
Supporting Documents
All supporting documentation is available below for your review.
Executive IP Quote — Legal & General
Your existing Increasing Executive Income Protection quote (December 2022)
Business Serious Illness Quote — VitalityLife
Key Person Critical Illness — £100,000 cover, 3x multiple claims, to age 70
Key Person Income Protection — Legal & General
Key Person IP — £5,000/month benefit, 24-month benefit period
CIExpert Assessment Report
Independent quality comparison — Vitality SIC 3X vs Legal & General (CIE537404)
Moving Forward
Next Steps
Review Both Options
Take your time to consider Option A and Option B. Think about the trade-off between longer-term benefit duration (Option A) and the significantly higher monthly payout that covers your income, overheads, and pension contributions (Option B).
Follow-Up Discussion
When you are ready, we will arrange a call to go through everything in detail, answer any questions, and confirm which option you would like to proceed with. We can also discuss adjusting the Key Person IP benefit level if you would like to explore a lower premium.
Application & Underwriting
Once agreed, we submit the applications. Your health has not changed since 2022, so we would expect underwriting to be straightforward. The insurers may request a GP report as a formality.
Policies Go On Risk
Once accepted and the first premiums are collected, your new cover will be in force. If you choose Option B, we will arrange the cancellation of the Executive IP at the point the new Key Person IP goes on risk — ensuring there is no gap in cover.
Please do not hesitate to reach out if you have any questions at all. I am always happy to talk things through.
Kind regards,
Mike Cooke
Senior Consultant · Broadbench