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Recommendations for private health insurance for two company directors
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RakeshS
Posts: 30 Forumite

Hi all,
My business partner and I would like to set up a private health insurance policy for myself, him and his family.
I'm single and he's got a wife and three kids. We're both in our 40s.
Are there any providers who stand-out from the pack?
What kind of features should I be looking at?
What kind of features should I be looking at?
Thanks in advance for any assistance.
Thanks,
Rakesh.
Thanks,
Rakesh.
0
Comments
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Can I piggy back your post and ask a related question of my own please.We don’t have private health insurance, either personally or through our small limited company. My dad (founder and still working director) is 80 and requires a cataract op. Cost 3 to 4 grand.
Could the company pay for this, as it could be claimed that it affects his ability to work, and therefore affects the business.0 -
Jaco70 said:Can I piggy back your post and ask a related question of my own please.We don’t have private health insurance, either personally or through our small limited company. My dad (founder and still working director) is 80 and requires a cataract op. Cost 3 to 4 grand.
Could the company pay for this, as it could be claimed that it affects his ability to work, and therefore affects the business.
upshot: he gains no advantage either way
he will incur the same rate of income tax on earnings as he will on the BIK
at his age there is zero employee NI
But the company will pay the same rate of employers NI on his earnings as it will on his BIK
everything equals out.
as it appears to be a pre existing condition will he actually get medical insurance cover???????0 -
Jaco70 said:Can I piggy back your post and ask a related question of my own please.We don’t have private health insurance, either personally or through our small limited company. My dad (founder and still working director) is 80 and requires a cataract op. Cost 3 to 4 grand.
Could the company pay for this, as it could be claimed that it affects his ability to work, and therefore affects the business.
0 -
Bookworm225 said:Jaco70 said:Can I piggy back your post and ask a related question of my own please.We don’t have private health insurance, either personally or through our small limited company. My dad (founder and still working director) is 80 and requires a cataract op. Cost 3 to 4 grand.
Could the company pay for this, as it could be claimed that it affects his ability to work, and therefore affects the business.
upshot: he gains no advantage either way
he will incur the same rate of income tax on earnings as he will on the BIK
at his age there is zero employee NI
But the company will pay the same rate of employers NI on his earnings as it will on his BIK
everything equals out.
as it appears to be a pre existing condition will he actually get medical insurance cover???????
No, I'm not talking about taking out insurance, simply paying for the op. Which is only 3 - 4 thousand pounds, and is in and out the same day.
My mum had it a few years ago, privately.0 -
daveyjp said:Jaco70 said:Can I piggy back your post and ask a related question of my own please.We don’t have private health insurance, either personally or through our small limited company. My dad (founder and still working director) is 80 and requires a cataract op. Cost 3 to 4 grand.
Could the company pay for this, as it could be claimed that it affects his ability to work, and therefore affects the business.
My mum had one cataract done privately, then waited for the NHS when she needed another, but eventually gave up and is now having the second one done in the same private hospital.
Its not a good state of affairs, particularly for people without savings, but its the reality today unfortunately.0 -
RakeshS said:My business partner and I would like to set up a private health insurance policy for myself, him and his family.I'm single and he's got a wife and three kids. We're both in our 40s.Are there any providers who stand-out from the pack?
What kind of features should I be looking at?Thanks in advance for any assistance.
In addition to taxes, our quote for an SME policy was much more than a personal policy. Things are different if you have hundreds of employees etc.
Most providers are broadly similar offering a range of policies from the very basic to the full fat. Features to look for depends on what level of cover you want? Do you want it for covering almost all illnesses or just major issues? You can choose not to have outpatient cover so you pay for the initial consultations etc but then the insurance pays for the operation and the inpatient care after or you can have it all covered. You can limit your choice of hospitals for a lower premium but check which hospitals are around you and if that would allow you to use them or not.Jaco70 said:Bookworm225 said:Jaco70 said:Can I piggy back your post and ask a related question of my own please.We don’t have private health insurance, either personally or through our small limited company. My dad (founder and still working director) is 80 and requires a cataract op. Cost 3 to 4 grand.
Could the company pay for this, as it could be claimed that it affects his ability to work, and therefore affects the business.
upshot: he gains no advantage either way
he will incur the same rate of income tax on earnings as he will on the BIK
at his age there is zero employee NI
But the company will pay the same rate of employers NI on his earnings as it will on his BIK
everything equals out.
as it appears to be a pre existing condition will he actually get medical insurance cover???????
No, I'm not talking about taking out insurance, simply paying for the op. Which is only 3 - 4 thousand pounds, and is in and out the same day.
My mum had it a few years ago, privately.
The answer is still the same, it would be considered an employee perk and so he would have to log it as BIK and pay income tax on it.
Technically there are certain ways around it however the cost of doing all that will be much more than the tax you'll pay on the BIK0 -
Jaco70 said:Bookworm225 said:Jaco70 said:Can I piggy back your post and ask a related question of my own please.We don’t have private health insurance, either personally or through our small limited company. My dad (founder and still working director) is 80 and requires a cataract op. Cost 3 to 4 grand.
Could the company pay for this, as it could be claimed that it affects his ability to work, and therefore affects the business.
upshot: he gains no advantage either way
he will incur the same rate of income tax on earnings as he will on the BIK
at his age there is zero employee NI
But the company will pay the same rate of employers NI on his earnings as it will on his BIK
everything equals out.
as it appears to be a pre existing condition will he actually get medical insurance cover???????
No, I'm not talking about taking out insurance, simply paying for the op. Which is only 3 - 4 thousand pounds, and is in and out the same day.
My mum had it a few years ago, privately.
he will not save money by getting the company to pay
BTW your claim that it affects his ability to work would be dodgy grounds because the ability to see is not reserved only for work purposes. As such the cost would "duality of purpose" since he uses his eyes in his private life. Potentially therefore, as duality of purpose is an all or nothing, ie. the entire cost might actually be wholly disallowed as a business expense.0 -
Bookworm225 said:Jaco70 said:Bookworm225 said:Jaco70 said:Can I piggy back your post and ask a related question of my own please.We don’t have private health insurance, either personally or through our small limited company. My dad (founder and still working director) is 80 and requires a cataract op. Cost 3 to 4 grand.
Could the company pay for this, as it could be claimed that it affects his ability to work, and therefore affects the business.
upshot: he gains no advantage either way
he will incur the same rate of income tax on earnings as he will on the BIK
at his age there is zero employee NI
But the company will pay the same rate of employers NI on his earnings as it will on his BIK
everything equals out.
as it appears to be a pre existing condition will he actually get medical insurance cover???????
No, I'm not talking about taking out insurance, simply paying for the op. Which is only 3 - 4 thousand pounds, and is in and out the same day.
My mum had it a few years ago, privately.
Having done a little work in PMI space, for Corporate policies its not uncommon for a claim to be out of scope of the policy but for the company to instruct the insurer to pay the claim on the promise of reimbursement; though this from an employee perspective would just be BIK on the insurance.
Similarly a former employer used to give every employee a £1,500 Xmas gift, it was declared and BIK paid and clearly it was 100% an employee benefit with no potential business use.0 -
DullGreyGuy said:Bookworm225 said:Jaco70 said:Bookworm225 said:Jaco70 said:Can I piggy back your post and ask a related question of my own please.We don’t have private health insurance, either personally or through our small limited company. My dad (founder and still working director) is 80 and requires a cataract op. Cost 3 to 4 grand.
Could the company pay for this, as it could be claimed that it affects his ability to work, and therefore affects the business.
upshot: he gains no advantage either way
he will incur the same rate of income tax on earnings as he will on the BIK
at his age there is zero employee NI
But the company will pay the same rate of employers NI on his earnings as it will on his BIK
everything equals out.
as it appears to be a pre existing condition will he actually get medical insurance cover???????
No, I'm not talking about taking out insurance, simply paying for the op. Which is only 3 - 4 thousand pounds, and is in and out the same day.
My mum had it a few years ago, privately.
Having done a little work in PMI space, for Corporate policies its not uncommon for a claim to be out of scope of the policy but for the company to instruct the insurer to pay the claim on the promise of reimbursement; though this from an employee perspective would just be BIK on the insurance.
Similarly a former employer used to give every employee a £1,500 Xmas gift, it was declared and BIK paid and clearly it was 100% an employee benefit with no potential business use.
BIK is a given,
My flag is whether the cost is allowable for corporation tax, would the company have paid the direct medical bill of a "mere" employee?
In the example you cite, the Christmas "gift" is clearly a taxable pay bonus payable to all0
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