Business Protection.

Have you the answers to these questions?

How would your business survive if one of your key employees or shareholders became seriously ill or died suddenly?

If your business partner died, what would happen to their share of the business? Could you afford to pay his family the value of their part of the business? If not would you be able to work with your business partner’s family? What if they sold on their portion of the business because you could not compensate them accordingly and you had to run your business with a complete stranger?

If you died, what would happen to your share of the business? Will your family be paid the true value of it?

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Some possible Solutions:

Keyman Cover:

This is a business-specific life insurance that can compensate a company for the financial loss of the death of an important member of the business. It can also cover that key person should they become seriously ill. The company sets up a policy that pays the benefit to the COMPANY if the key person dies or gets seriously ill to help compensate against the potential loss of revenue occurred in the absence of this person.

Product features

Protection:  If a key employee dies, a cash sum is paid to help maintain the business.

Continuity: Can help minimise interruption to business activity.

Financial assistance: Can help with bank loans that involved the key person.

Staffing:  Can help provide resources to find a suitable replacement for the employee

Co-Director Insurance:

This is business-specific life insurance that can provide compensation to shareholders of a company. If one of the directors dies, a lump sum will be released, enabling the surviving directors to buy the deceased person’s shares from their next-of-kin.

Product features

Peace of Mind: Company directors know they will be in the position to keep control of the company.

Ease and Choice: The deceased’s successor is not obliged to become involved in the business.

Stability: The remaining directors can retain ownership of the company and provide continuity for the business.

Options: This insurance can also provide serious illness cover.

Partnership Insurance:

This is a specific kind of life insurance that can provide compensation to a business partnership. If one of the partners dies a lump sum will be released, allowing the deceased person’s share of the partnership to be bought from their next-of-kin.

Product features

Financial Stability: Gives surviving partners the funds to repay the deceased’s estate.

Ease and Choice: The deceased’s successor is not obliged to become involved in the business.

Peace of Mind: Partners have the security of knowing they can retain control of their affairs.

Flexibility: This insurance plan can be tailored to include serious illness cover

Death in Service Cover:

Whereby the company pays for a life policy that can pay out up to 4 times salary to the employees or directors family. The payment is tax free and the company pays for the policy – there is no taxable element on the director or their estate.

Self-employed people can set up a “Pension Term Plan” whereby they claim back tax relief at their marginal rate, similar to pension payments.

Executive Income Protection:

Whereby the company pays for an income protection policy that can cover up to 75% of salary, less any benefits already in place.

Self-employed people can set up Personal Income Protection whereby they claim back tax relief at their marginal rate, similar to pension payments. Tax relief allowed is subject to certain limits and includes pension contributions.

Self-employed individuals and in most cases company directors do not qualify for State Disability Benefits.