5th March 2020
Business Protection – What Is It?
WHAT IS BUSINESS PROTECTION?
Business protection is often overlooked. However it is KEY to protecting your business from financial losses caused by unavoidable change. As a rule, we believe that we are pretty invincible. This tends to extend to our businesses too. However, statistics clearly show that we are NOT invincible. Have you ever taken time to think about the implications for your business should you (or a key person) become critically ill or die? Here are some of the options available to you.
Key Person Protection
Key Person Protection protects a business against the financial effects of death, terminal and critical illness; of a key person. The policy proceeds are paid directly to the business. They help to replace both the key person and any loss of profit that might occur. This could ensure your business can continue trading. There is also
Business Loan Protection.
Policy proceeds are used to help pay off any outstanding loans your business might have should a guarantor become critically ill or die.
Partners’/Directors/Limited Liability Share Protection
This is when policy proceeds are used to help buy the share of the business of (one of) the owners is diagnosed as above
There is also an option to take out a Relevant Life Plan which is designed to provide like cover for an employee, which may include Directors, whilst they are employed. This plan offers some very special advantages, notably tax efficiency. Although the life cover is personal to you and your employees the policy counts as a business expense so is tax deductible – a cost effective way to offer life cover to your employees if your business is not eligible for a group life scheme.
All businesses – no matter how small – should be protected. Life happens to us all. Please contact us for further details.