Regulation & Tax of Income Protection

At the time of writing in the UK HMRC don’t give tax relief from premiums already paid. The bonus from this is you will not have to pay capital gains or income tax on claims paid from income protection schemes. The regulatory aspects of this say that selling short term income protection will have to abide to the regulations from the FSA a source said from LV.

All the criteria set out by (OFT) “Office of Fair Trading” must be met when selling insurance for payment protection. OFT says group income protection or singular protection must ad dear to points set out by FCA or (ICOBS) “Conduct of Business rules”.

Financial advisors can promote protection products through either whoever they like as long as they abide by ICOBS or COBS rules. All of these regulations set out by these two bodies help to protect the customer from creating problems which may stop them switching or terminating the cover.

Our source at LV said “if you sell income protection you can sell life insurance as well”. These protections can be  sold to the customer in a variety of ways such as via telephone or on a one to one in person basis also online is a good method as it helps you to visit a variety of different companies ensuring the best deal.