ConfidentialYour Protection Recommendation
Tax-Efficient
Protection
for You, Your Family & Your Business
Jaap Vossers
IT Contractor & Software Engineer
Limited Company Director
Your Recommendation
A Tailored Approach
Dear Jaap,
Thank you for taking the time to speak with me on 23 April. It was a pleasure to learn more about your work as an IT contractor and software engineer, your family situation, and your financial objectives. Your ability to deliver complex software solutions to fintech, banking, and credit card clients is the engine that drives your household income and your business — and it is that ability we need to protect.
You currently earn approximately £90,000 per annum through your limited company, structured as a £10,000 salary with the remainder taken as dividends. You and Kasha have three children aged 14, 10, and 7, a main mortgage of approximately £550,000, a second property mortgage of around £260,000, and monthly family outgoings of approximately £7,000. You are the primary income generator for the household, and your company's revenue depends entirely on your ability to work.
You already have personal life insurance paid through your limited company, which is positive. However, there are two significant gaps in your current protection: no critical illness cover and no income protection. If you were diagnosed with a serious illness or became unable to work due to injury, there would be no financial safety net for your family or your business beyond any personal savings.
I am recommending two products to close these gaps. First, Key Person Critical Illness Cover with Vitality (3X), which provides a tax-free lump sum to your business if you are diagnosed with one of 167 covered conditions — with the opportunity to claim up to three times. Second, Executive Income Protection with Legal & General, which replaces your monthly income if you are unable to work due to illness or injury, assessed on your own occupation as a software engineer. Both policies are paid by your limited company and qualify for Corporation Tax relief at 19%, making them highly tax-efficient.
The following pages set out my recommendations in detail.
Tom Hitchcock
Founder / Director · Protection Adviser
Broadbench Ltd
Business Serious Illness Cover
Vitality Key Person Critical Illness Cover — 3X
As the sole revenue generator for your limited company, a serious illness diagnosis would have an immediate and severe impact on your business. Your company's income stops the moment you cannot work, yet your two mortgages totalling over £800,000, your family's £7,000 monthly outgoings, and your business obligations continue. Key Person Critical Illness Cover provides a tax-free lump sum to your business if you are diagnosed with one of 167 covered conditions, giving you the financial breathing room to focus on recovery.
Tax-Efficient Through Your Business
Premiums are paid by your limited company as a legitimate business expense, qualifying for Corporation Tax relief at 19%. This means a £156.70 monthly premium effectively costs the business just £126.93 after tax relief. The payout is made directly to the company as a tax-free lump sum, which can then be used to cover business costs, pay your salary, or fund your recovery.
What Does 3X Cover Mean?
167 Conditions Covered
Business Serious Illness Cover 3X covers 167 conditions under the business guide, giving materially broader protection than a standard critical illness plan.
Up to Three Opportunities to Claim
With 3X cover, separate claims can be made up to three times the original cover amount, subject to the policy rules and condition definitions.
Severity-Based Payouts
3X pays across seven severity tiers, from 5% for earliest-stage conditions up to 100% for the most serious diagnoses, instead of waiting only for the worst-case presentation.
NHS Waiting List Benefit
For 24 covered surgical procedures, the plan can assess a claim when the insured is formally placed on an NHS waiting list, potentially creating funds before surgery takes place.
Severity-Based Payout Tiers
| Payout | Severity | Available On |
|---|---|---|
| 100% | Life-threatening | 1X, 2X, 3X |
| 75% | Severe | 1X, 2X, 3X |
| 50% | Moderate | 1X, 2X, 3X |
| 25% | Significant | 2X, 3X |
| 15% | Early-stage | 2X, 3X |
| 10% | Minor | 3X only |
| 5% | Earliest detection | 3X only |
Conditions Relevant to Software Engineers
As an IT contractor and software engineer, your career depends on cognitive sharpness, sustained visual acuity, fine motor control, and cardiovascular fitness. The following condition groups are particularly relevant to your role and demonstrate why comprehensive cover matters.
Cognitive & Neurological
Your cognitive ability is your most valuable professional asset. Any neurological condition affecting concentration, memory, or decision-making would directly impact your ability to architect software solutions, debug complex systems, and deliver enterprise-grade code to fintech clients.
Scenario
If you suffered a stroke affecting your executive function, you would be unable to lead technical design sessions or produce the analytical deliverables your clients depend on. The 3X plan pays from 25% for minor stroke up to 100% for major stroke with lasting impairment.
Vision & Sensory
Screen-based work requires sustained visual acuity across multiple monitors for extended periods. Even partial vision loss could prevent the detailed code review, debugging, and system architecture work your role demands.
Scenario
Macular degeneration affecting central vision would make it impossible to read code, review pull requests, or work with complex data structures. Under 3X, significant visual impairment triggers a 50% payout, while total blindness pays 100%.
Cardiovascular
Cardiovascular events can cause lasting fatigue and inability to maintain the demanding cognitive schedule of software engineering. Recovery is typically months, during which your company has zero revenue and your family's £7,000 monthly outgoings continue.
Scenario
A heart attack requiring bypass surgery would mean 3–6 months of recovery. The SIC payout would provide a lump sum to your business, allowing it to continue meeting salary obligations and covering your two mortgages during recovery.
Dexterity & Musculoskeletal
Keyboard and mouse work requires sustained fine motor control for 8+ hours per day. Conditions affecting hand function would prevent you from writing code, navigating development environments, and producing client deliverables.
Scenario
Severe rheumatoid arthritis affecting both hands would make sustained keyboard work impossible. This could trigger a TPD claim under 'Work Tasks', paying 50–100% depending on the number of tasks affected.
Cancer
Cancer accounts for 69.6% of all critical illness claims. As a man aged 42, prostate cancer is a key risk to be aware of. The 3X plan covers cancer at every stage — from earliest detection (5%) to life-threatening (100%).
Scenario
An early-stage cancer requiring 6 months of chemotherapy would halt your contracting work entirely. A traditional CI policy might not pay out at early stages; the 3X plan pays from the earliest detection, giving you financial breathing room when you need it most.
Mental Health & Cognitive
Severe neurological events affecting cognitive function are covered. Any condition impairing your ability to think, communicate, or reason would be catastrophic to your earning capacity as a software engineer.
Scenario
A severe head injury could leave you with impaired concentration or personality changes making client-facing work and complex problem-solving impossible. The 3X plan covers traumatic brain injury across multiple severity tiers.
NHS Waiting List Benefit
Payout Before Surgery — Not After
Vitality's Waiting List Benefit pays out as soon as you are placed on an NHS waiting list for one of 24 covered surgical conditions. You do not need to wait for the surgery itself — the benefit is designed to give you financial flexibility to fund private treatment, cover lost income, or manage household costs during what can be a lengthy wait.
How It Works — Illustrative Example
With £150,000 of Serious Illness Cover, if you were formally added to an NHS waiting list for a covered surgery — such as coronary artery bypass — the claim can be assessed at that stage rather than after the operation. An early payment of, for example, 50% (£75,000) could be made while you are still waiting, giving you the option to fund private treatment, cover your mortgages, or maintain your family's lifestyle during recovery. The actual payout depends on the policy terms, evidence, underwriting, and the relevant condition definition.
Available on All Plans
1X, 2X, and 3X — 14 conditions
Available on 2X & 3X
6 additional conditions
Exclusive to 3X Plan
4 additional conditions — your recommended plan
NHS Waiting Lists — Current Context
As of early 2026, approximately 7.5 million people are on NHS waiting lists in England, with a median wait of over 14 weeks. For some surgical procedures, waits can exceed 12 months. The Waiting List Benefit provides financial flexibility during this period, allowing you to explore private treatment options or manage your household and business costs while waiting.
Total Permanent Disability (TPD) — Detailed Definitions
Vitality's Business SIC includes three TPD definitions, each providing a different route to claim. The most important for you as a software engineer is the Own Occupation definition — the gold standard that assesses your ability to perform your specific role, not just any job.
Assessed on your ability to perform your own specific role. This is the gold standard of TPD definitions — you are covered if you cannot do your own job, not just any job.
How It Works in Practice
This definition looks at whether you can perform the material and substantial duties of your specific occupation as an IT contractor and software engineer. That means: writing and reviewing code, architecting software solutions, leading technical discussions with clients, managing project timelines, and communicating with stakeholders. If a condition prevents you from performing these duties — even if you could theoretically do a different, less demanding job — you qualify for a 100% payout.
Why This Matters for Software Engineers
This is critical for IT contractors. Without 'Own Occupation' cover, an insurer could argue you could still work in a less demanding role — perhaps basic data entry or telephone support. Own Occupation means the assessment is based on your actual job as a software engineer delivering complex fintech solutions, not a hypothetical alternative career.
Example Scenarios
A neurological condition affecting concentration — preventing complex software architecture and debugging
A musculoskeletal condition making sustained keyboard work impossible — unable to write code for extended periods
A cardiovascular event causing chronic fatigue — preventing the demanding schedule of client-facing contract work
Assessed on your ability to perform specific work tasks such as walking, lifting, bending, climbing, communicating, and using a keyboard or mouse.
How It Works in Practice
This definition assesses disability against a list of specific work-related tasks. The payout scales with the number of tasks you can no longer perform: the more tasks affected, the higher the payout.
Why This Matters for Software Engineers
Even if you do not meet the 'Own Occupation' threshold, Work Tasks provides a secondary route to claim. If a condition affects multiple work tasks — such as keyboard use, communication, and concentration — you could receive a substantial payout.
Example Scenarios
Severe carpal tunnel affecting keyboard and mouse use (two tasks) — partial payout
Stroke affecting communication, concentration, and keyboard use (three tasks) — substantial payout
Spinal injury affecting mobility, sitting for extended periods, and keyboard use (three tasks) — near-full payout
Assessed on your ability to perform everyday activities such as washing, dressing, feeding yourself, mobility, and continence.
How It Works in Practice
This is the broadest definition and applies when a condition is so severe that it affects your ability to perform basic daily activities. The payout scales with the number of activities affected.
Why This Matters for Software Engineers
This acts as a final safety net. If a condition is severe enough to affect daily living activities, it would certainly prevent working — but this ensures coverage even if the condition doesn't fit neatly into other categories.
Example Scenarios
Severe stroke affecting mobility and self-care — payout based on number of activities affected
Advanced neurological condition affecting feeding, dressing, and mobility — near-full payout
Major spinal injury affecting multiple daily activities — scaled payout up to 100%
To Age 65 (Indexed) · 3X Cover
£100,000
To age 65 (indexed) · 3X
£150,000
To age 65 (indexed) · 3X
£200,000
To age 65 (indexed) · 3X
To Age 70 (Indexed) · 3X Cover
£100,000
To age 70 (indexed) · 3X
£150,000
To age 70 (indexed) · 3X
£200,000
To age 70 (indexed) · 3X
Executive Income Protection
Legal & General — Own Occupation
If you were unable to work due to illness or injury, your company's income would stop immediately. With monthly family outgoings of £7,000 and two mortgages totalling over £800,000, the financial pressure would be severe within weeks. Executive Income Protection replaces your monthly income — assessed on your specific role as a software engineer — giving you and Kasha the financial stability to focus on recovery without the stress of lost earnings.
Tax-Efficient Through Your Business
Premiums are paid by your limited company and qualify for Corporation Tax relief at 19%. Executive Income Protection covers your total remuneration of £90,000 — including salary and dividends — not just your PAYE salary. The benefit of £6,000 per month would be paid to you via the company, replacing the income you would otherwise lose.
Key Benefits
Own Occupation Definition
Assessed on your ability to perform your specific role as a software engineer. If you cannot do your own job — even if you could theoretically do a different, less demanding role — the benefit pays out.
Covers Salary & Dividends
Executive Income Protection covers your total remuneration package including salary, dividends, bonuses, and P11D benefits — not just your PAYE salary of £10,000.
Rehabilitation & RedArc Support
Includes rehabilitation support as standard plus RedArc wellbeing services — registered nurse telephone support to help manage your recovery and return to work.
Changing Your Policy Option
As your circumstances change — new contracts, higher day rate, additional dependants — you can adjust your cover without starting a new application.
Why Own Occupation Matters for IT Contractors
Without an 'Own Occupation' definition, an insurer could argue that you are still capable of working in a less demanding role — perhaps basic data entry or telephone support — even if you can no longer perform the complex software engineering, system architecture, and client-facing consultancy that generates your £700 day rate. Legal & General's Own Occupation definition ensures the assessment is based on your actual job, not a hypothetical alternative.
To Age 65 — 3 Month Waiting Period
£6,000/mo
To age 65 · 3 months waiting period
1 year payout period
£6,000/mo
To age 65 · 3 months waiting period
2 years payout period
To Age 70 — 3 Month Waiting Period
£6,000/mo
To age 70 · 3 months waiting period
1 year payout period
£6,000/mo
To age 70 · 3 months waiting period
2 years payout period
Claims Data
Vitality & L&G Claims Statistics
Understanding how insurers perform at claims stage is essential. The following data is drawn from Vitality's and Legal & General's 2024 claims reports and demonstrates their commitment to paying valid claims.
Vitality — Critical Illness Claims 2024
Total Claims Paid
£142m
Vitality 2024
Conditions Covered (3X)
167
Across 7 severity tiers
Cancer Claims
69.6%
Most common CI claim
Severity Tiers
7
From 5% to 100% payout
Critical Illness Claims by Cause
Legal & General — Income Protection Claims 2024
Total Claims Paid
20,903
L&G 2024
Total Amount Paid
£1bn+
Across all products
IP Claims Paid
797
Income Protection claims
IP Acceptance Rate
84%
Claims accepted
Income Protection Claims by Cause
L&G's longest running income protection claim has been paying for 34 years. Their average monthly IP benefit is £730, though Executive Income Protection for higher earners like yourself provides significantly more — in your case, £6,000 per month.
Key Business Protection Statistics
of small businesses fail within 5 years
cite unexpected loss of a key person
of small business owners have key person cover
average cost of replacing a key person vs salary
Cost in Context
What This Costs vs What You Earn
Protection can feel like an abstract cost until you see it in the context of your daily earnings. At a day rate of £700, here is exactly how each policy option breaks down — per working day, as a percentage of your earnings, and as minutes of your working day. All net figures reflect Corporation Tax relief at 19%.
Individual Policy Costs
Based on your day rate of £700 · 22 working days/month · 19% CT relief
| Policy | Cover | Monthly | Net/mo | Net/day |
|---|---|---|---|---|
Key Person SIC 3X To age 65 · £100k | £100,000 | £90.54 | £73.34 | £3.33 |
Key Person SIC 3X To age 65 · £150k | £150,000 | £138.52 | £112.20 | £5.10 |
Key Person SIC 3X To age 65 · £200k | £200,000 | £177.91 | £144.11 | £6.55 |
Key Person SIC 3X To age 70 · £100k | £100,000 | £106.80 | £86.51 | £3.93 |
Key Person SIC 3XRec To age 70 · £150k | £150,000 | £156.70 | £126.93 | £5.77 |
Key Person SIC 3X To age 70 · £200k | £200,000 | £209.84 | £169.97 | £7.73 |
Exec IP (L&G) To age 65 · 1yr payout | £6,000/mo | £30.90 | £25.03 | £1.14 |
Exec IP (L&G) To age 65 · 2yr payout | £6,000/mo | £37.85 | £30.66 | £1.39 |
Exec IP (L&G) To age 70 · 1yr payout | £6,000/mo | £37.45 | £30.33 | £1.38 |
Exec IP (L&G)Rec To age 70 · 2yr payout | £6,000/mo | £46.04 | £37.29 | £1.70 |
Recommended Package — Combined Daily Cost
Key Person SIC £150k (3X, to 70) + Exec IP £6,000/mo (2yr, to 70)
5 minutes
of your working day funds complete critical illness cover and income protection for you, Kasha, and your business — every single month.
Monthly (gross)
£202.74
Monthly (net after CT)
£164.22
Daily (net after CT)
£7.46
% of your day rate
1.1%
Your 8-Hour Working Day
At your day rate of £700, the net cost of your recommended protection package — after Corporation Tax relief — is just £7.46 per working day. That is 1.1% of what you earn. In the first 5 minutes of each working day, you have already earned enough to fund comprehensive critical illness cover and income protection for you, Kasha, and your three children. Everything you earn beyond that moment is yours — with the peace of mind that your family's £7,000 monthly outgoings, your two mortgages, and your business obligations are protected.
5 min
of your 8-hour day
Less time than your morning coffee break funds a full month of protection.
£7.46
per working day (net)
Less than a takeaway coffee — for complete income and critical illness protection.
1.1%
of your day rate
98.9% of your earnings remain untouched — only 1.1% funds your entire safety net.
Why This Matters
Why Acting Now Is Important
You have built a successful contracting career with a strong income, a growing family, and significant property commitments. The one missing piece is a financial safety net that protects all of it if your health changes.
No Critical Illness or Income Cover
You currently have life insurance but no critical illness cover and no income protection. If you were diagnosed with a serious illness tomorrow, there would be no lump sum for your business and no replacement income for your family — yet your £7,000 monthly outgoings and two mortgages would continue.
Sole Revenue Generator
Your limited company's entire revenue depends on your ability to deliver software engineering services. Without you, the company has zero income. Key Person SIC protects the business, while Executive IP replaces the income that funds your family's lifestyle.
Age & Timing
At 42, you are in excellent health and a non-smoker — which means premiums are at their most competitive right now. Every year you delay, premiums increase and the risk of a health change that could affect underwriting grows. Locking in rates now is the most cost-effective decision.
Tax Efficiency Through Your LTD
Both policies are paid by your limited company and qualify for Corporation Tax relief at 19%. This means every £1 of premium effectively costs the business just 81p. Funding protection personally would cost significantly more after income tax and National Insurance.
Next Steps
What Happens Next
Recommendation Meeting
Scheduled — 30 April 2026We will meet on Thursday 30 April at 17:30 to walk through this recommendation in detail. I will explain each product, answer your questions, and discuss which options best fit your priorities.
Review Your Options
After our meetingYou will have time to review the quotes, discuss them with Kasha, and decide which combination of cover amount and term works best for your family and your business.
Application
When you are readyOnce you are happy with the chosen options, I will handle the full application process with Vitality and Legal & General. The applications are straightforward and I will guide you through every step.
Policies Live
Typically 2–4 weeksOnce accepted, your Key Person Critical Illness Cover and Executive Income Protection will be live. Your business, your family, and your income will be protected — paid tax-efficiently through your limited company.
Rated Excellent · 485 reviews
Tom made everything straightforward
Tom at Broadbench was brilliant from start to finish. He explained all the options clearly, didn't push anything unnecessary, and found us cover that was significantly better value than what we had before. Highly recommend.
James T.
March 2026