Your Future Protected

Private medical insurance (PMI) pays for private medical treatment when you need it — whether that's a specialist consultation, diagnostic tests, or a surgical procedure. Rather than joining an NHS waiting list that could stretch to months or even years, you get seen quickly at a private hospital or clinic of your choice.

Most policies work on a diagnosis pathway: you see your GP first, get a referral, then your insurer takes over. Some insurers now offer direct-access services so you can book a specialist without a GP referral at all. Baker Hudson Health will explain exactly how each policy works so there are no surprises when you need to claim.

The following are illustrative examples only. They do not represent real clients or actual cases. Individual policy terms, eligibility and outcomes will vary.

Being clear about exclusions is as important as understanding the benefits. Standard PMI exclusions include pre-existing conditions at the time of application (though some insurers apply moratorium underwriting which can reinstate cover after a symptom-free period), GP appointments, A&E and emergency care, routine dental and optical, cosmetic procedures, and pregnancy or fertility treatment. Every policy differs — Baker Hudson Health will compare policies carefully and flag any exclusions that matter to your specific circumstances.

Premiums vary widely depending on your age, the level of cover, your hospital list, and whether you include an excess. A healthy 35-year-old can find good mid-level cover from around £60–80/month. A family of four might pay £200–400/month depending on cover depth. Adding a voluntary excess (say £250–£500 per claim) can reduce premiums significantly and is worth discussing.

Baker Hudson Health compares rates across Aviva, Bupa, AXA Health, Vitality, WPA, The Exeter and others to find the right balance of premium and cover for your needs. We review your policy at renewal too — loyalty rarely pays with PMI and switching can save hundreds of pounds a year.

Protect your loved ones: Ensure your family can pay the mortgage, cover living costs, and maintain their lifestyle.

Affordable premiums: Life insurance is surprisingly inexpensive. A 35-year-old non-smoker can get £250,000 cover for as little as £15/month.

Tax-free payout: Life insurance benefits are paid tax-free to your beneficiaries.

Final wishes: Cover funeral costs and outstanding debts so your family isn't burdened.

The following are illustrative examples only. They do not represent real clients or actual cases. Individual policy terms, eligibility and outcomes will vary.

A common starting point is 10x your annual income — though the right amount depends on your outstanding debts, your dependants' needs, and how long you'd want income replaced. Baker Hudson Health will guide you through a proper needs analysis before comparing quotes.

For mortgage protection, the cover should at minimum match your outstanding balance. For family income protection, consider how much your partner would need per month and for how many years. For IHT planning, the calculation is based on your estimated estate value and applicable nil-rate bands.

Life insurance is often surprisingly affordable. Some examples of what healthy non-smokers can typically expect:

Smokers, those with existing health conditions, or higher-risk occupations will pay more, and some may need specialist underwriting. Baker Hudson Health has access to the full market including specialist medical underwriters — and we will help manage any underwriting disclosures to get you the best possible terms.

Income protection (IP) is long-term insurance that replaces a portion of your salary if you're unable to work due to illness or injury. Unlike critical illness cover — which pays a one-off lump sum for specific conditions — income protection pays a regular monthly benefit for as long as you remain unable to work, right up to your chosen retirement age if necessary.

The benefit is usually set at 50–70% of your gross income (keeping it below your take-home pay to maintain an incentive to return to work). It's one of the most important protection products available, yet it remains severely underused: fewer than 1 in 10 UK workers have any form of income protection.

The following are illustrative examples only. They do not represent real clients or actual cases. Individual policy terms, eligibility and outcomes will vary.

SSP pays just £116.75/week (2024/25 rate) for up to 28 weeks. For most people, that represents a pay cut of 60–90%. And once SSP ends, there's nothing unless you have income protection, employer sick pay, or savings substantial enough to cover months or years of outgoings.

Employment and Support Allowance (ESA), the means-tested state benefit, pays a maximum of £117.60/week (contribution-based, 2024/25) — again, a fraction of what most households need. Income protection fills this gap completely and is not means-tested.

Premiums depend on your age, occupation, health, the deferred period, benefit amount, and whether you want the benefit to run to retirement. A 35-year-old office worker insuring £2,000/month to age 65 with a 13-week deferred period might pay £40–70/month. A manual worker or someone in a higher-risk occupation will pay more.

Baker Hudson Health compares policies from Legal & General, Aviva, The Exeter, LV=, Royal London, Vitality, and others to find the right combination of premium, definition of disability, and benefit terms for your situation.

Critical illness (CI) cover pays a one-off, tax-free lump sum if you are diagnosed with one of the conditions specified in your policy and survive a defined period after diagnosis (usually 14–30 days). Unlike income protection, the payout is not linked to your ability to work — it is triggered by the diagnosis itself.

You receive the money as a single payment and can spend it on anything you choose: paying off a mortgage, adapting your home, funding private treatment, topping up an income protection policy, or simply buying time to recover without financial pressure. There are no restrictions on how the money is used.

The following are illustrative examples only. They do not represent real clients or actual cases. Individual policy terms, eligibility and outcomes will vary.

Most comprehensive policies cover 40–100+ conditions in total, often split into full-payment and partial-payment tiers. Partial payments (typically 25% of the sum assured up to £25,000) can be triggered by less severe diagnoses such as low-grade prostate cancer or early-stage conditions. Baker Hudson Health compares policy definitions — not just premiums — to find the most comprehensive cover for your budget.

Critical illness cover is a one-off lump sum on diagnosis — ideal for clearing debt, funding home adaptations, or covering costs during treatment. It doesn't require you to be off work and pays regardless of recovery.

Income protection pays a regular monthly income if illness or injury prevents you from working — ongoing until you recover or retire. It covers a far wider range of conditions including mental health, back problems and anything that keeps you off work, but doesn't pay a lump sum.

The ideal solution is often both. A heart attack might trigger a CI lump sum to clear debt and fund recovery, while income protection provides ongoing monthly income if you can't return to work immediately. Combining them creates a comprehensive financial safety net. Baker Hudson Health will show you how both products work together and whether a combined life and CI policy makes sense for your budget.

Most CI policies extend cover to your children at no extra cost — typically covering children from 30 days to 18 years (or 21 if in full-time education). The children's benefit is usually a percentage of the parent's sum assured (commonly 25–50% up to £25,000–£30,000).

Children's CI cover can pay for private treatment, home adaptations, or simply allow a parent to take time off work to be with their child during diagnosis and treatment — without financial pressure. When comparing policies, the breadth of children's cover (and whether it's included or costs extra) is a key differentiator.

A complementary service that works alongside public and private healthcare — giving you an alternative route, not a replacement. You choose which of the six services to use, and when, across pre-diagnosis, diagnosis and treatment.

Tap a service to read more.

The cancer and serious illness support service complements your existing health or protection insurance. It is available as an add-on to Personal or Income Protection policies arranged through Baker Hudson Health and provides a layer of specialist support that the NHS, private medical insurance, or a standard critical illness lump sum alone cannot replicate.

FriendlyShield is a short-term income protection policy from National Friendly — a mutual society established in 1868. Unlike traditional income protection, there are no medical questions, prices are shown instantly, and you can apply entirely online in under five minutes.

Attract and retain talent: A quality healthcare benefit is one of the most valued perks and helps you stand out to candidates.

Reduce absence: Faster treatment means employees recover and return to work sooner.

Tax efficient: Premiums are usually an allowable business expense, though cover is treated as a benefit in kind for employees.

Healthier workforce: Preventative screening and early intervention keep your team well.

Group PMI is arranged as a single policy covering all eligible employees. Employees are enrolled (and dependants can often be added at employee expense), and each person has access to the same level of cover without individual medical underwriting up to a free cover limit. This means employees with pre-existing conditions can often access cover that they couldn't get individually.

Most group schemes allow flexible cover levels — you can offer the same cover to all employees, or tier benefits by grade or seniority. Baker Hudson Health will design the scheme structure, negotiate the most favourable terms, and manage the annual renewal process on your behalf.

Group PMI is available from as few as 2 employees. Smaller schemes may have slightly different underwriting terms (typically moratorium underwriting rather than full medical underwriting), but the core benefits and insurer options remain the same. Baker Hudson Health specialises in finding the right solution for SMEs, not just large corporates.

Protect your finances: Long-term absence can be costly — group income protection shifts that risk to the insurer.

Support your people: Demonstrates genuine care and helps employees through difficult times.

Encourage return to work: Built-in rehabilitation services help reduce the length of absences.

Strengthen your benefits: A standout addition to any employee package.

Group income protection — sometimes called employee sick pay insurance — provides a replacement income to staff who are unable to work due to illness or injury. Rather than relying solely on statutory sick pay, which falls well below most employees' salaries, a group scheme ensures your team continues to receive a meaningful proportion of their earnings — typically 50–75% of salary — for an agreed benefit period.

The policy is owned and paid for by the employer. Premiums are usually treated as an allowable business expense, making the cover highly tax-efficient. When an employee makes a claim, the insurer pays the benefit directly to the business, which continues to pay the employee in the normal way. This keeps the arrangement straightforward for HR and payroll teams while delivering real financial security to the individual.

Group income protection policies include a deferred period — the length of time an employee must be absent before the benefit begins to pay. Common deferred periods are 4, 8, 13, 26 or 52 weeks. Employers typically align this to the end of their own company sick pay entitlement, so the policy takes over seamlessly when their obligations end.

Choosing a longer deferred period reduces the premium, so businesses can calibrate the cover to their existing HR policies and budget. Our advisers will help you identify the most cost-effective structure for your specific circumstances.

Most group income protection schemes include access to rehabilitation services as standard — physiotherapy, counselling, occupational health assessments and vocational support. These programmes are designed to help employees recover and return to meaningful work as quickly as possible, benefiting both the individual and the business.

Many insurers engage rehabilitation support even before a formal claim is made, keeping absences shorter from the outset and reducing long-term claims costs. As independent advisers, Baker Hudson Health compares schemes from leading providers including Aviva, Unum, Legal & General and Canada Life to ensure you get the best value combination of cover and support services.

The following are illustrative examples only. They do not represent real clients or actual cases. Individual policy terms, eligibility and outcomes will vary.

Meaningful financial help: A lump sum lets employees focus on recovery without money worries.

Enhance your package: A valued benefit that shows real commitment to your team.

Flexible and scalable: Works for small teams and large workforces alike.

Cost effective: Group rates make serious-illness cover affordable per employee.

Group critical illness cover pays a tax-free lump sum directly to an employee if they are diagnosed with a specified serious illness — such as cancer, heart attack or stroke — and survive the stated survival period (typically 14 days). Unlike income protection, which replaces earnings on an ongoing basis, critical illness pays a one-off sum that the employee can use however they choose: to cover medical costs, adapt their home, pay off debt, or simply provide breathing space during treatment and recovery.

Premiums are paid by the employer and are usually an allowable business expense. The benefit, however, belongs to the employee — giving them genuine financial security at one of the most difficult moments in their lives.

Most group critical illness schemes cover a core set of conditions including cancer, heart attack, stroke, multiple sclerosis, and major organ failure — often extending to 40 or more qualifying illnesses. Many policies also offer optional children's critical illness cover at no extra charge, providing additional peace of mind for employees with families.

Because the policy is arranged on a group basis, underwriting requirements are significantly lighter than individual cover. In most cases employees can join the scheme up to a free cover limit without providing medical evidence, making it quick and straightforward to roll out across your workforce.

Support families: Provides vital financial security for an employee's dependants.

Tax efficient: Premiums are normally an allowable business expense and not a P11D benefit for employees.

Highly valued: A cornerstone benefit that employees and candidates expect from quality employers.

Affordable: Group rates make meaningful life cover cost-effective per head.

Group life insurance — commonly known as death in service — is one of the most widely offered employee benefits in the UK. If an employee dies while in your employment, the policy pays a tax-free lump sum to their nominated beneficiaries. Cover is typically expressed as a multiple of salary — commonly two to four times annual earnings — and is set by the employer for all employees or different categories of staff.

The policy is owned by the employer and written under a discretionary trust, which means the benefit falls outside the employee's estate. This keeps the payout free from inheritance tax and ensures it can reach the family quickly without going through probate — a crucial advantage at an already difficult time.

One of the most attractive features of group life insurance is how straightforward it is to arrange. Employees typically join the scheme automatically up to a free cover limit, with no requirement for medical underwriting. This means cover can be extended to the entire workforce quickly and without the complications that come with individual policies.

For larger payouts above the free cover limit — often applicable to senior staff — some evidence of good health may be required, but this is handled smoothly by the insurer with minimal disruption to the employee.

Surveys consistently show that life insurance is one of the most valued employee benefits, particularly among those with dependants. Offering death in service cover signals genuine care for your people and their families — and is increasingly expected by candidates evaluating offers from quality employers. As independent advisers, Baker Hudson Health will compare group life schemes from across the market to find the right structure and premium for your business.

Employers rarely see the full impact of the benefits they provide. Group life insurance is most often appreciated in the worst circumstances — but the knowledge that it is in place provides quiet reassurance to employees at every stage of their working life.

Group life cover is almost always written in a discretionary trust, meaning the payout does not form part of the employee's estate. This avoids inheritance tax and probate delays, and means the benefit can typically be paid within weeks to the nominated beneficiaries. Employees should be encouraged to complete an expression of wishes form — Baker Hudson Health advises on this process as part of scheme setup.

Safeguard continuity: Keeps the business stable while you recover from losing a crucial individual.

Protect profits: Replaces lost revenue tied to a key person's expertise or relationships.

Maintain confidence: Reassures banks, investors and clients that the business can withstand a major loss.

Buy time: Gives you breathing room to recruit and rebuild without financial panic.

Key person insurance — also known as keyman insurance — is a life insurance or critical illness policy taken out by a business on the life of an individual whose skills, relationships, or expertise are essential to the company's success. Unlike personal life insurance, the policy is owned by the business, premiums are paid by the business, and in the event of a claim the payout goes directly to the company.

Any business has people whose loss would cause significant disruption: the founder who drives new business, the specialist whose technical knowledge is irreplaceable, or the director whose relationships underpin major contracts. Key person cover provides a cash injection to absorb that disruption — covering recruitment costs, lost profits, loan repayments or whatever the business needs most at that moment.

Key person policies can be structured to pay out on death, on diagnosis of a serious illness, or both. A life-only policy pays a lump sum if the key person dies or is given a terminal diagnosis during the policy term. Adding critical illness cover means the business also receives a payout if the key person is diagnosed with a qualifying condition — such as cancer, heart attack or stroke — and survives the stated survival period.

For many businesses the critical illness element is just as important as the life cover: a key person forced off work for months or years by serious illness can be just as damaging to the business as their death, and the payout allows the company to manage that impact without descending into financial difficulty.

The tax treatment of key person insurance depends on how the policy is structured and its purpose. Where cover is taken out to protect profit — for example to cover the loss of sales generated by a key individual — premiums are often an allowable business expense, though any claim proceeds would be taxable. Where the policy is used to protect a business loan, different rules typically apply. We always recommend discussing the tax position with your accountant, and our advisers can guide you through the structuring options to ensure your policy is set up correctly from the outset.

The following are illustrative examples only. They do not represent real clients or actual cases. Individual policy terms, eligibility and outcomes will vary.

The sum assured is typically calculated using one of three methods: a multiple of the key person's salary (commonly 3–5x), the cost of replacing the individual (recruitment, interim cover, training), or the estimated profit contribution. Baker Hudson Health will help you work through this calculation properly so your cover is proportionate to the actual risk.

Key person policies can be written on a level term or decreasing term basis, for life only or with critical illness cover added. The policy is owned by and paid for by the business; the payout goes directly to the business and can be used however necessary.

Tax efficiency: One of the most cost-effective ways to fund life cover compared with a personal policy from taxed income.

Flexible for any size: Suits sole directors and small businesses that can't access group schemes.

Valuable benefit: Provides employees and directors with substantial life protection.

Estate friendly: Held in trust so benefits pass quickly and outside the estate.

Relevant life cover is a tax-efficient life insurance policy arranged by an employer for the benefit of an individual employee or director and their family. It works in a similar way to a death in service scheme — if the insured person dies or is diagnosed with a terminal illness while employed, a lump sum is paid to their beneficiaries. The key difference from a group scheme is that relevant life is an individual policy, making it the ideal solution for small businesses, sole directors, or companies that want to offer enhanced cover to specific individuals.

The policy is held under a discretionary trust, which means the benefit falls outside the employee's estate — keeping it free from inheritance tax and ensuring it reaches the family quickly, without the delays of probate.

Relevant life cover offers compelling tax efficiency compared with a director or employee funding the same level of life insurance personally from post-tax income. Premiums paid by the company are usually treated as an allowable business expense and are not subject to National Insurance. The benefit is not treated as a P11D benefit in kind for the employee, and because it is held under a discretionary trust, the payout is free from inheritance tax for the beneficiaries.

For a company director in particular, the savings compared with a personally-owned policy can be substantial over the term of the cover. Our advisers will walk you through the numbers so you can see the full picture before you commit.

Relevant life cover is especially well-suited to small and medium-sized businesses that do not have enough employees to set up a full group life scheme, or to company directors who want to arrange substantial life cover in a tax-efficient way. It can also be used to top up existing death in service benefits for higher earners whose cover needs exceed what the group scheme provides. Baker Hudson Health will compare policies from leading insurers to find the right level and structure of cover for your situation.

Assume a company director wants £500,000 of life cover and pays corporation tax at 25%. A relevant life policy premium of £100/month is paid by the company. The premium is an allowable business expense — saving £25/month in corporation tax. Compared to a personal policy funded from dividend income (taxed at 33.75% for a higher-rate taxpayer), the saving over 20 years is significant. Baker Hudson Health can model the exact saving for your situation.

Relevant life cover is most suitable for directors and employees of limited companies who want life cover arranged tax-efficiently. It is not available to sole traders or partnerships. The policy must be placed in a relevant life plan trust, which Baker Hudson Health arranges on your behalf. The trust structure ensures the death benefit is paid quickly to beneficiaries and falls outside the estate for IHT purposes.

Critical illness cover is not permitted under a relevant life plan — though a separate company-paid key person CI policy can be arranged alongside it. Baker Hudson Health will review your full protection needs as a director and design a package that covers all the bases tax-efficiently.

Avoid forced repayment: Prevents a lender demanding repayment when the business is most vulnerable.

Protect the company: Keeps debts from threatening the survival or ownership of the business.

Peace of mind: Directors and stakeholders know borrowing is covered if the worst happens.

Tailored to you: Cover structured around the size and term of your specific borrowing.

Business loan protection — sometimes called business debt protection — is a life insurance or critical illness policy designed to ensure that a business loan, commercial mortgage, or director's loan account can be repaid if a key owner or director dies or suffers a serious illness. Without it, lenders may demand immediate repayment of outstanding debt at the worst possible time, placing the survival of the business at serious risk.

The policy is typically owned by the business and matched to the outstanding loan amount, with the sum assured decreasing in line with the debt as it is repaid. If a claim is made, the payout goes directly to the business — or in some cases directly to the lender — ensuring the debt is settled and the remaining owners retain control without the pressure of a sudden financial liability.

A director's loan account represents money owed by the business to a director — and in the event of that director's death, the estate has a legal right to demand immediate repayment. For many businesses this obligation would be difficult or impossible to meet without disrupting operations or forcing a fire sale of assets. Business loan protection can be structured specifically to cover this liability, giving the business the cash to honour the obligation without crisis.

Similarly, where directors have given personal guarantees on business borrowing, the risk to their personal estate and family home in the event of their death or serious illness can be substantial. A properly structured loan protection policy addresses this risk directly.

Many commercial lenders now require borrowers to demonstrate that adequate business protection is in place as a condition of lending. Even where it is not a formal requirement, having loan protection in place demonstrates financial prudence and strengthens your relationship with your bank or lender. Our advisers will help you structure cover that meets your lender's requirements and provides genuine protection for the business, its owners and their families.

Many commercial lenders require evidence of life cover as a condition of lending, particularly for larger facilities. Even where it is not a condition, failing to insure a business loan creates a significant unprotected liability. If a key director dies or becomes seriously ill, the business may be unable to generate sufficient revenue to service the debt — leaving personal guarantees exposed and potentially triggering immediate repayment demands.