Many directors of small companies understand the benefit private medical insurance can bring - not just from the health perspective but also in terms of minimising the impact their absence will have on their business by ensuring they get treated quickly.

And whilst buying a personal policy can be one way of addressing this, the advantages of taking out company cover and extending this benefit to their employees should not be ignored.

Here’s the typical cost for two directors taking out personal cover for themselves and their families:

• Director 1 aged 50, buys family cover = £269.77* per month
• Director 2 aged 40, buys family cover = £204.14* per month

This would cost the company £5686.92* for the year.

*Premiums based on Standard Life Healthcare individual Primecare, Countrywide hospital list, monthly premiums, 25% no-claims discount, no excess. Rates as at 13 November 2006. Figures are for illustration only and are not guaranteed.

You would probably assume that extending cover to all their staff would be an employee benefit a small company like this couldn’t afford. But take a look at the figures and you might be surprised.

By adding the other four employees and creating a group scheme, the premiums and total annual cost compares favourably:

• Director 1 aged 50, family cover = £146.38** per month
• Director 2 aged 40, family cover = £111.77** per month
• Employee 1 aged 40, single cover = £44.71** per month
• Employee 2 aged 30, single cover = £34.03** per month
• Employee 3 aged 25, single cover = £30.35** per month
• Employee 4 age 22, single cover = £30.35** per month

This would cost the company £4771.08** for the year.

**Premiums based on Standard Life Healthcare Company Primecare, Countrywide hospital list, monthly premiums, no Excess, moratorium, +6 member rates. Rates as at 13 November 2006. Figures are for illustration only and are not guaranteed.

This would save the directors an amazing £915.84 p.a. which clearly makes far better financial sense. And, looking after the well-being of their staff may not only help to get them back to work quickly should they fall ill, but it’s an attractive employee benefit too - which could help them attract and retain the best staff.

Advisers would gain between 10% - 20% initial commission with 7.5% on renewal and more importantly, a happy client.

For more information contact Standard Life Healthcare Intermediary Sales Department

• Telephone on 0845 602 3461 Monday to Friday 9am-5pm. Call charges may vary. Calls may be recorded/monitored to help improve customer service.

• or by email - Email link

There is no guarantee that any email sent will be received or will not have been tampered with or intercepted during transmission. You may prefer to contact us by phone or in writing.

No guarantees are given regarding the effectiveness of any arrangement entered into on the basis of these comments.

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