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Does your business have sufficent protection?

What steps have you and your business partners taken to protect your business and families in the event of your death or critical illness?

Without the right protection in place, you are leaving your business and family exposed to the taxman and potential financial disaster.

Key person protection

Insures against the financial losses that may arise if a key employee (also referred to as a key person) dies, becomes terminally ill or suffers a critical illness. It pays out a lump sum, giving the business the cash to meet its ongoing financial needs.

Business loan protection

Similar to the personal life insurance taken out to cover a mortgage. In most cases you can protect the full amount with life cover, or life and critical illness cover. When you make a claim, the value of the policy is paid to either the business or directly to the lender if the cover has been assigned to them.

Share purchase protection

A life or life and critical illness policy allowing business owners to buy the insured shareholder’s interest in the firm should one of the business owners die or become terminally or critically ill.

Partnership protection

Ensures that funds are available to allow the remaining partner(s) in a business to buy a partner’s shareholding if they die, become terminally ill or suffer a critical illness. This gives each partner the security of knowing that their beneficiaries or personal representatives will have a ready and willing buyer instead of having to maintain an interest in the business.

Relevant life protection

A term assurance plan available to employers to provide a lump sum benefit for an employee; paid if the employee dies whilst employed during the length of the policy. The plan is particularly effective for company owners/directors who can provide life cover for themselves paid for through their limited company. It is tax efficient as HMRC usually views the premiums as an allowable business expense, and from the employees point of view it is not treated as a P11D benefit.