What we do
Optima Health and Life provide comprehensive financial, healthcare and employee benefit solutions for businesses and directors / owners across the UK.
With a focus on safeguarding your family, business and employees, we specialise in advising and arranging a wide range of tailored business protection products and tax efficient employee benefits. Our expert team of financial consultants understands the intricate needs of modern businesses, offering personalised guidance and products that provide security and peace of mind.
Tailored Solutions:
We understand that every business is unique, which is why we offer tailored solutions to meet your specific requirements and objectives.
Expert Advice:
Our team of experienced financial consultants are dedicated to providing expert guidance, ensuring you make informed decisions that align with your business goals.
What we specialise in:
Business Protection and Tax Efficient Business Solutions and Employee Benefits.
Business Protection refers to a range of insurance products designed to safeguard a business and its key stakeholders from financial risks arising from
unforeseen events. These products are crucial for maintaining the stability and continuity of a business in the face of various challenges.
Here's an overview of the main areas of business protection in the UK:
1
Business Loan Protection:
Overview: Business Loan Protection is a type of insurance that helps a business repay its outstanding loans or debts in the event of the death or critical illness of a key person or business owner.
How it Works: The policy provides a tax free lump sum payout that can be used to settle business loans, ensuring that the financial burden doesn't fall on the remaining partners, directors, or the deceased individual's estate.
Key Benefits: Protects the financial stability of the business by covering outstanding loans, preventing potential financial strain during a challenging time.
2
Key Person Insurance:
Overview: Key Person Insurance, also known as Key Man Insurance, is a policy that protects a business against the financial loss incurred due to the death or critical illness of a key employee.
How it Works: The policy pays out a lump sum to the business, providing liquidity to cover financial losses, recruitment and training costs of a replacement, or reassure stakeholders.
Key Benefits: Safeguards the business against the impact of losing key individuals, helping to maintain operations and mitigate financial risks.
3
Shareholder / Ownership Protection:
Overview: Shareholder or Ownership Protection is designed to provide funds for the purchase of a deceased shareholder's or business owner's stake in the company. It's available to all types of businesses where there is more than one owner.
How it Works: In the event of a shareholder's death, the policy pays out a lump sum to the remaining shareholders, enabling them to buy the deceased shareholder's shares and maintain control of the business.
Key Benefits: Ensures a smooth transition of ownership, preventing external parties from gaining control, and provides financial security to the deceased shareholder's family.
4
Executive Income Protection:
Overview: Executive Income Protection, also known as Executive Income Replacement, is a policy that protects a business by providing a replacement income if key employees are unable to work due to illness or injury.
How it Works: The policy pays a regular income to the business allowing it to continue to remunerate an insured executive, helping to
maintain living expenses, pension contributions and potentially the cost of a temporary replacement.
Key Benefits: Maintains financial stability by ensuring that the business can continue to operate smoothly even if a key executive is temporarily or permanently unable to work.
5
Relevant Life Plan
Overview:
Relevant Life Insurance is a tax-efficient life insurance policy allowing employers provide individual death-in-service benefits to employees.
Ideal for small businesses and high-earning employees, offering a lump sum to beneficiaries upon the employee's death or terminal illness.
How It Works:
Employers set up and pay for the policy, with premiums being tax-deductible.
The policy is written into a trust, ensuring the lump sum benefit is paid to the employee's dependents.
Key Benefits:
Tax-Efficient: Premiums are tax-deductible and not a benefit-in-kind.
Flexible: Suitable for small businesses and high earners, customisable cover.
Attractive Benefit: Enhances employee benefits, aiding in retention and recruitment.
Other Services
Optima Health and Life also provide advice on employee benefits such as Group Private Medical Insurance, Group Life cover, Group Income Protection as well as the full range of personal protection products for individuals and employees. We also have access to both residential and commercial mortgage advisers as well as partnering with wealth managers and investment advisers specialising in pension advice.
Why partner with us?
We're an experienced group of advisors from all sectors of the financial services arena,
all across the UK. Our team come from a background working and advising on:
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Pensions and investments
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Residential, buy to let and corporate mortgages
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Personal and business/corporate risk and protection specialists
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Private medical insurance
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Banking and business advice
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Product training and compliance
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Employee benefits
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Health and Wellness for employees
We specialise and focus on advising and arranging valuable protection for businesses
and corporate clients, including their families and employees throughout the whole of the
UK.
With decades of experience behind us, we understand the complexity and requirements
of todays business owners. We understand the importance of good advice backed up
with the peace of mind that any solution has been arranged correctly.
It’s important to us that professional introducers partnering with us understand what we do
and can identify opportunities within their client bank to enhance both their clients and
their own well being.
We offer advice to business owners face to face (including online) and do not charge a fee.
Terms
New Business (Life)
New Business (PMI)
Initial Fees Choice -
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Flat Rate or
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Commission percentage
Commission percentage
Support
We offer training and support on the following:
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Business types, taxation and remuneration methods
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Benefits available to employees and owner / directors
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Why is business protection important for you and your client
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How to increase revenue/ commissions
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Statements and pipeline updates
Case Study 1
John is a 40 year old business owner and sole company director. He has been arranging £300,000 of finance to support the growth of the business and requires insurance to cover his personal guarantee to the bank.
During this process you have identified that he has some life cover but not enough to cover the new loan. You refer your client to one of our business advisers whilst you continue to work with him.
After a discussion with one of our advisers, John was advised to rearrange his current life insurance so that it would be both more tax efficient by providing it through the business. We also arranged an additional bespoke policy through the business to cover the new business lending in full.
Arranging both these products not only had the effect of protecting John's family and personal assets but also the business in the event of his death or critical illness. John also saved around £25,000 in tax savings over the full term of his life policy by switching it to a more efficient product that qualified as a business expense.
The bank was satisfied that the loan was fully covered, and John had the peace of mind that his family and assets were fully protected. He was delighted that the savings made on one of the policies paid for the one required for the business.
The policies generated a referral commission of £!320.00 to the introducer (you).
Case Study 2
Aisha is a 29 year old successful entrepreneur who is in the process of arranging Invoice Financing to aid the cashflow of her new business. During your meetings with her you have established that she has no provision for income or capital should she fall ill or suffer a serious illness. You've explained to her the risks she may face and she's agreed to talk with one of our team whilst you arrange the finance.
After a quick call and online meeting with one of our advisers, Aisha was advised to put some protection in place to do two things. The first was to set up a policy which would provide Aisha with an income if she could not work due to ill health. This would maintain her income until her return to work or reaching her normal retirement age. The second policy would provide Aisha with a tax free capital sum should she be diagnosed with a specific serious illness condition, such as a cancer, stroke or heart attack (and around 50 other conditions).
Arranging both these products ensured Aisha had the peace of mind knowing her income was secure for the rest of her working life should she fall ill. Also she had enough cover should a serious illness occur which would provide enough capital to purchase a home.
The two polices provided the following:
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£3250 per month tax free until age 68
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£250,000 tax free Critical Illness payment payable on death or diagnosis of one of 60 specific named conditions.
The cost of these plans was less then £100 per month and referral commission of £400.00 was earned.
Case Study 3
You have been talking to one of your clients Naz.
Naz is a 45-year-old company director and he and two fellow directors arranged a £420,000 commercial mortgage through you just over a year ago. You have a clear understanding of the financials of the business but are not sure of what they have in the way of protection benefits.
Ordinarily, you would not be concerned about the company’s protection and risk solutions, but you have recently been introduced to the subject and are aware of the basics of the cover.
You decide to ask Naz if they have had or considered a financial review with a view to awarding the directors with important tax-deductible employee benefits or ensuring there is capital available to keep control of the business should a director/ shareholder die.
This starts a conversation which results in a referral to one of our specialist advisers. Within a couple of weeks, a presentation has been delivered to the three directors proposing the following:
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A tax-deductible Death in service benefit to be provided by the business for each of the three directors and one key individual
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A tax efficient shareholder protection arrangement between the three directors which ensures the business survives the death or critical illness of one or more owners. This includes the provision of appropriate life policies equal to the value of each shareholding. In addition, the necessary option agreements and trusts are completed to ensure business reliefs are not lost and no IHT or CGT becomes liable
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A Group Private Medical policy which will provide private healthcare
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Life Insurance paid for via the business to cover the term loan arranged last year
The benefits provided above are all agreed aside from the Private Medical Insurance and are detailed and costed as follows:
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Three x £1million life policies written in trust for the benefit of the family of each director (£180pm tax deductible)
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One x £120,000 life policy for a 45-year-old key employee, provided as an employee death in service benefit (£16pm tax deductible)
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With a business value of £1.5 million, three life and critical illness policies for £500,000 each (£600 pm tax deductible)
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Three life polices for £400,000 each to cover the business loan in full. The benefit is on a reducing basis and will match the term and balance of the loan (£90 pm)
The cost to the business to provide the above benefits combined is £886 pm before tax reliefs are offset.
The business owners are now secure. Should one of them die or become seriously ill there will be capital available to grant the transfer of shares for cash at an already challenging time. This will avoid the potential litigation and costs incurred with the loss of a director.
There will also be a separate tax-free payment of £1 million to their family provided by the Death in service employee benefit.
The business loan is covered as well, and their key employee has family security with his death in service benefit.
Naz and his fellow directors are still considering private medical insurance which provides fast access to private healthcare, protecting both them and their families.
We were happy to remunerate the referral for this business an amount in the region £3500.
