Business Protection

Take a look at our key Business protection policies and ensure your business is covered for all life’s uncertainties.

SHAREHOLDER PROTECTION

Shareholder Protection can ensure that business succession is guaranteed, should the tragic event of the death of a shareholder occur. Life insurance is arranged on each shareholder’s life to the value of their share in the business and in the event of death, the sum assured would be payable to the deceased shareholder’s family via a trust in exchange for the business shares. Shareholder Protection can be arranged as Life cover or Life with Critical Illness cover.

PARTNERSHIP PROTECTION

The death of a Partner could cause a business problems such as, dissolving of the Partnership if no agreement is in place, entitling the deceased’s family to their share of the business or having to pay the deceased’s estate their entitlement if there is an agreement in place. Also, if the business is an LLP and there aren’t any funds to buy the deceased’s interest, then their estate will be entitled to profits on an ongoing basis. Life insurance or Life with Critical Illness cover can be arranged to provide a solution to these possible problems.

KEY PERSON COVER

Key Person insurance is designed to provide businesses with cover for outcomes such as lost profits and/or the cost of replacing a ‘key’ employee, in the event of death or critical illness. The company would take out a policy on the life of the key person based on the employee’s value to the business and in the event of a claim, the benefit would be paid to the business. The business can then use the benefit in whatever way they deem to be most suitable.

 

KEY PERSON INCOME PROTECTION

Key person income protection pays your business a monthly benefit amount if, due to illness or injury, the life assured becomes unable to perform their occupation. The benefit can be used to help cover any loss of profit or pay for a replacement employee.

EXECUTIVE INCOME PROTECTION

Executive income protection pays your business a monthly benefit if, due to illness or injury, the life assured is unable to perform their occupation and so loses taxable earned income. The benefit can be used to pay replacement taxable earned income to the employee through PAYE during their period of incapacity.

RELEVANT LIFE POLICIES

A Relevant Life Policy is a way of providing Death-in-Service benefit for individual employees. Relevant Life Policies are suitable for directors or any employee of a business and offer a tax-efficient way of arranging ‘personal’ life insurance. A Relevant Life Policy is taken out on the life of the employee by the company and paid for by the company, with the likelihood of premiums being classed as a business expense. Policies are written in Trust and benefits are paid to nominated beneficiaries via the Trust.

BUSINESS LOAN PROTECTION

Business Loan Protection is designed to protect such liabilities as loans, overdrafts, commercial mortgages and director loan accounts. Business loan protection policies can be taken out by the company on the life of a director or employee, as either Life or Life with Critical Illness cover, which would pay a lump sum benefit to the company, to be used to help repay any such liabilities.

Policy Providers