A Tax-Efficient Protection Proposal for Sphere IT Solutions Limited
Prepared for Peter Hillerby
by Michael Cooke, Broadbench · April 2026
Three complementary policies working together to protect you, your family, and your business. Your company pays all premiums as a corporation tax-deductible business expense, making this a highly tax-efficient way to arrange comprehensive protection. The total package costs less than a business lunch per working day. Nothing is set in stone. All premiums and cover levels shown are indicative and based on our initial conversations. If you would prefer lower premiums, we can adjust the sums assured, shorten the cover terms, or restructure the package entirely. The goal is to find the right balance for you.
About You and Your Business
Peter, you are the sole director of Sphere IT Solutions Limited, specialising in enterprise asset management systems, particularly IBM Maximo. Your expertise spans solution design and architecture for asset-intensive businesses across UK utilities, oil and gas, and rail sectors.
As an IT contractor operating outside IR35, your business depends entirely on your ability to work. If illness or injury prevented you from consulting, the impact on your income and your family would be immediate. The recommendations below are designed to protect against that risk in a tax-efficient way.
| Name | Peter Hillerby |
| Company | Sphere IT Solutions Limited |
| Specialism | Enterprise Asset Management (IBM Maximo) |
| Sectors | Utilities, Oil & Gas, Rail |
| IR35 Status | Outside IR35 |
| Date of Birth | 8 February 1975 |
| Smoker Status | Non-smoker |
| Marital Status | Married, 2 children |
Three Pillars of Protection
Each policy serves a distinct purpose. Together, they provide comprehensive cover for your family, your health, and your income.
Relevant Life Cover
VitalityLife
Cover
£1,000,000
Premium
£144.60/mo
If the worst were to happen, a tax-free lump sum is paid directly to your family via trust. This sits outside your estate for inheritance tax purposes.
Business Serious Illness Cover 3x
VitalityLife
Cover
£100,000
Premium
£119.22/mo
On diagnosis of a covered serious illness, a lump sum is paid to your company. This can fund a replacement consultant, cover fixed costs, or be extracted as dividends. Pays up to 300% for multiple claims.
Key Person Income Protection
Legal & General
Cover
£6,250/mo
Premium
£132.23/mo
If you are unable to perform your own occupation due to illness or injury, this pays £6,250 per month to your company after a 4-week waiting period, for up to 24 months. Covers conditions including stress and musculoskeletal issues.
Relevant Life Cover
Relevant Life Cover provides a tax-free lump sum to your family if you pass away during the policy term. The policy is written under trust, which means the benefit is paid directly to your beneficiaries without going through probate and sits outside your estate for inheritance tax purposes.
Your company pays the premiums as a tax-deductible business expense. Unlike a standard life policy, there is no P11D benefit in kind for you personally, making it significantly more tax-efficient than personal cover.
The policy is portable: if you close Sphere IT Solutions in the future, you can convert it to a personal plan or transfer it to another business without losing cover or needing to re-underwrite.
Policy Details
| Provider | VitalityLife |
| Product | Optimised Relevant Life with Vitality Plus |
| Sum Assured | £1,000,000 |
| Cover Term | To age 75 |
| Cover Type | Level |
| Premium Basis | Guaranteed |
| Gross Monthly Premium | £144.60 |
| Multi-Benefit Discount | £2.00 saving |
| Trust | Written under trust |
| P11D Benefit | None |
Market Comparison
£1,000,000 Life Cover to age 75, guaranteed premiums. VitalityLife offers the most competitive premium in the market, with the added benefit of the Vitality Programme.
| Provider | Monthly Premium | Difference |
|---|---|---|
| VitalityLife Optimised Relevant Life with Vitality Plus | £152.10 | — |
| VitalityLife Optimised Life with Vitality Plus | £153.55 | +£1.45 |
| Legal & General Business Life | £178.62 | +£26.52 |
| Legal & General Relevant Life Plan | £178.62 | +£26.52 |
| Royal London Business Menu Plan | £181.67 | +£29.57 |
| Royal London Relevant Life Plan | £181.67 | +£29.57 |
| VitalityLife Relevant Life | £194.16 | +£42.06 |
| VitalityLife Life | £196.08 | +£43.98 |
Source: iPipeline Comparison Report, 28 April 2026. The VitalityLife premium shown (£152.10) is before the multi-benefit discount. With the discount applied, the premium reduces to £144.60/month.
Key Features
Tax-free lump sum paid directly to your family via trust
No P11D benefit in kind for you personally
Premiums are a corporation tax-deductible business expense
Portable: can convert to personal plan if company closes
Guaranteed premiums that only change with Vitality status
Outside your estate for inheritance tax purposes
Business Serious Illness Cover 3x
VitalityLife Serious Illness Cover 3x is a standalone critical illness policy that pays a lump sum to Sphere IT Solutions on diagnosis of a covered condition. The "3x" means the policy can pay out up to 300% of the sum assured over the lifetime of the plan, recognising that people may suffer from multiple serious illnesses.
With a £100,000 sum assured, the maximum total payout is £300,000. The benefit is paid to your company, which can use it to fund a replacement consultant, cover fixed business costs, or distribute to you as dividends.
VitalityLife covers 164 conditions across varying severity levels. The policy also includes Total Permanent Disability cover, providing a payment of up to 100% of the sum assured if you meet the TPD criteria.
Policy Details
| Provider | VitalityLife |
| Product | Business Serious Illness Cover 3x |
| Sum Assured | £100,000 |
| Maximum Payout (3x) | £300,000 |
| Cover Term | To age 70 |
| Cover Type | Level |
| Premium Basis | Guaranteed |
| Gross Monthly Premium | £119.22 |
| Multi-Benefit Discount | £1.75 saving |
| TPD Cover | Included |
| Conditions Covered | 164 |
Why VitalityLife SIC 3x?
Market Leader
Ranked first by CIExpert for conditions relevant to IT professionals, including stress, musculoskeletal, and cardiac conditions.
3x Payout Structure
Up to 300% of sum assured for multiple claims. Claims on SIC do not affect your Relevant Life Cover amount.
Standalone CI Policy
No life insurance rider attached, which provides a cleaner position for corporation tax deductibility.
Vitality Optimiser
Premiums can reduce over time based on your engagement with the Vitality Programme. More on this below.
Key Features
Covers 164 conditions across multiple severity levels
Up to 300% total payout for multiple serious illness claims
Total Permanent Disability cover included at no extra cost
Premiums are a corporation tax-deductible business expense
Claims on SIC do not reduce your Relevant Life Cover
Defaqto 5-star rated product
CIExpert Independent Assessment
CIExpert is the UK's leading independent critical illness comparison service. It assesses the statistical likelihood of a successful claim and the amount paid out, personalised to your age, gender, and smoker status. Report CIE539175, 28 April 2026.
VitalityLife SIC 3X — Ranked #1
Highest quality index score across all available providers
| Rank | Provider | Policy | Quality Score |
|---|---|---|---|
| 1 | VitalityLife | SIC 3X - Adult Only | 19,744 |
| 2 | Royal London | Standard - Adult Only | 19,596 |
| 3 | Legal & General | + Adult Extra | 19,229 |
| 4 | LV= | Enhanced + Standard Child | 18,799 |
| 5 | Zurich | Business Only - Select | 18,630 |
| 6 | Aviva | Business Only | 17,620 |
Three additional providers (Beagle Street, Guardian, Scottish Widows) were assessed but are unavailable for this cover purpose or term. Full report available in the documents section below.
Head-to-Head: VitalityLife vs Royal London
Quality Score
19,744
vs 19,596 (+0.76%)
Preferential Conditions
54
vs 50 (Royal London)
Full Payment Score
18,160
vs 17,990 (+0.87%)
VitalityLife's SIC 3X policy scores highest across both full payment conditions and overall quality index. It offers 54 preferential conditions (where Vitality's wording or payment level is superior) compared to Royal London's 50. The severity-based payment structure means Vitality pays out on more conditions at varying levels, providing broader protection across a wider range of diagnoses.
Key Person Income Protection
Key Person Income Protection replaces your income if you are unable to work due to illness or injury. The policy pays £6,250 per month to Sphere IT Solutions after a 4-week deferred period, for up to 24 months per claim.
Crucially, this is an own occupation policy (Occupation Class 1). It pays out if you are unable to perform your specific role as an enterprise asset management consultant. It does not require you to be unable to do any work at all.
As a contractor, this is particularly important. Because you are a permanent employee of your own limited company, the policy recognises your occupation continuously, regardless of whether you are currently on a client engagement. There is no gap in cover between contracts.
The £6,250 monthly benefit is based on your gross profit of approximately £100,000. Insurers validate gross profit at the point of claim by reviewing the last three years of accounts.
Policy Details
| Provider | Legal & General |
| Product | Key Person Income Protection |
| Monthly Benefit | £6,250 |
| Deferred Period | 4 weeks |
| Benefit Period | 24 months per claim |
| Cover Term | To age 68 (16 years) |
| Occupation Class | 1 (Own Occupation) |
| Gross Monthly Premium | £132.23 |
| Premium Basis | Guaranteed |
| Gross Profit Basis | ~£100,000 p.a. |
Why "Own Occupation" Matters for IT Contractors
Some personal income protection policies revert from "own occupation" to "activities of daily living" during gaps between contracts, which significantly raises the bar for a successful claim and can reduce the maximum benefit. Because this Key Person policy is held by your company, and you are a permanent employee of Sphere IT Solutions, the own-occupation definition applies continuously. Your cover does not weaken between engagements.
Key Features
Own occupation definition: pays if you cannot do your specific IT consulting role
Continuous cover regardless of gaps between client contracts
Covers stress, anxiety, depression, and musculoskeletal conditions
Premiums are a corporation tax-deductible business expense
4-week deferred period keeps premiums competitive
Benefit paid monthly for up to 24 months per claim
Your Investment in Protection
All premiums are paid by Sphere IT Solutions as a corporation tax-deductible business expense. The figures below reflect the net cost to your company after tax relief at 19%.
| Policy | Gross Monthly | Annual Gross | CT Relief (19%) | Net Annual |
|---|---|---|---|---|
| Relevant Life Cover | £144.60 | £1,735.20 | £329.69 | £1,405.51 |
| Business SIC 3x | £119.22 | £1,430.64 | £271.82 | £1,158.82 |
| Key Person IP | £132.23 | £1,586.76 | £301.48 | £1,285.28 |
| Vitality Plus | £5.50 | £66.00 | £12.54 | £53.46 |
| Total | £401.55 | £4,818.60 | £915.53 | £3,903.07 |
Net Cost Per Working Day
£15.49
Comprehensive protection for your family, your health, and your income for less than a business lunch.
Flexibility: Nothing is Cast in Stone
All premiums and cover levels shown are indicative and based on our initial conversations. If you would like to reduce the monthly outlay, we can adjust the sums assured, shorten the cover terms, or restructure the package. For example, reducing the Relevant Life sum assured to £500,000 would bring that premium down to approximately £79.98 per month. We can tailor the package to find the right balance between cover and cost.
Vitality Optimiser
Both VitalityLife policies include the Optimiser, which adjusts your premiums based on how actively you engage with the Vitality Programme. The healthier and more active you are, the lower your premiums. Given your multisport endurance and aqua-biking activities, you are well positioned to achieve Gold or Platinum status.
Bronze
+2.5%
Premium adjustment
No engagement
0 points
Silver
+1.5%
Premium adjustment
Low engagement
800 points
Gold
+0.5%
Premium adjustment
Moderate engagement
1,600 points
Platinum
0%
Premium adjustment
High engagement
3,600 points
Potential Savings Over the Plan Term
The table below shows the total premiums you would pay across both VitalityLife policies (Relevant Life + Business SIC 3x) depending on your Vitality status. These figures are taken directly from your VitalityLife quote.
| Status | Total Premiums | Saving vs Bronze |
|---|---|---|
| Stay on Bronze | £85,097.16 | — |
| Achieve Platinum | £65,661.12 | £19,436.04 |
Premiums are recalculated at each plan anniversary based on your Vitality status. The percentages shown reflect the adjustment applied to the standard insurance premium.
How the Optimiser Works
When you take out a VitalityLife plan, you automatically gain access to the Vitality Programme. You earn Vitality activity points through everyday healthy activities: exercise tracking, health screenings, and wellness checks. Your accumulated points determine your Vitality status (Bronze, Silver, Gold, or Platinum), and your premiums are adjusted accordingly at each plan anniversary.
At Platinum status, your premiums are at the standard insurance rate (0% adjustment). At Bronze, a 2.5% loading is applied. The key point is that you have direct control over your premium costs through your lifestyle choices. Given your active lifestyle with multisport endurance events and aqua-biking, you are well placed to achieve and maintain Gold or Platinum status.
Vitality Plus Rewards
For £5.50 per month, Vitality Plus unlocks additional lifestyle rewards on top of the Optimiser premium discounts.
Apple Watch
Get active, get up to 50% off an Apple Watch
SportsShoes.com
50% off one pair of in-season running shoes each plan year
Waitrose
Up to 25% cashback on Good Health food when you get active
Caffe Nero
Weekly handcrafted drink or smoothie when you earn 12 activity points
How the Tax Position Works
Relevant Life Cover
- Premiums paid by Sphere IT Solutions
- Corporation tax deductible (19%)
- No P11D benefit in kind for you
- Benefit paid tax-free to family via trust
- Outside your estate for IHT
Business SIC 3x
- Premiums paid by Sphere IT Solutions
- Corporation tax deductible (19%)
- Benefit paid to the company
- Can be extracted as dividends
- Standalone CI (no life rider) for cleaner CT position
Key Person IP
- Premiums paid by Sphere IT Solutions
- Corporation tax deductible (19%)
- Benefit paid to the company
- Benefit is a taxable trading receipt
- Gross profit validated at claim from last 3 years' accounts
Supporting Documents
Your Quotes
Product Brochures and Key Features
VitalityLife Business Protection Plan Summary
Key features document for business protection
VitalityLife SIC Conditions Guide
Full list of 164 covered conditions
VitalityLife SIC Product Guide
Detailed product guide for Serious Illness Cover
Why Choose VitalityLife SIC
Overview of VitalityLife Serious Illness Cover benefits
L&G Key Person IP Policy Booklet
Full policy terms and conditions
L&G Key Person IP Policy Summary
Key features summary document
L&G Key Person Customer Guide
Customer guide to Key Person protection
What Happens Next
Review this recommendation
Take your time to read through the details. Nothing needs to be decided immediately, and all figures can be adjusted.
We meet tomorrow at 9:00 AM
I look forward to our call where we can go through everything together, answer any questions, and agree on the right structure for you.
Application process
Once you are happy with the structure, we complete the applications for VitalityLife and Legal & General. This involves lifestyle and medical questions.
Underwriting
The insurers will request a GP report and may arrange a nurse screening. An underwriter reviews everything and issues terms. This typically takes 4 to 6 weeks.
Cover in place
Once terms are accepted, your policies go live and your protection is in place. There is no fee for our protection advice; we are remunerated by commission from the insurers.
A reminder: nothing is set in stone. The figures presented here are indicative and based on our initial conversations. The sums assured, terms, and structure can all be adjusted. If you would prefer lower premiums, we can reduce cover levels or restructure the package. The goal is to find the right balance between comprehensive protection and a comfortable monthly outlay for Sphere IT Solutions.