You may have heard the mantra that if you don’t claim tax relief on the premiums, you won’t be taxed on the sum assured. Well, it isn’t quite that straightforward…
I’ve been told this particular ‘rule’ many times, and even read about it in some insurers’ guides. It’s often referred to as a rule of thumb. Apparently, the distance between the end of your thumb and the first joint is roughly an inch (you’re looking, aren’t you) and, for most of us, that’s not far out. But if you hired a builder who took measurements using his thumbs, you’d probably start searching for a replacement! So you should apply similar caution when giving advice to your business protection clients.
