Products

Each business's requirements and exposures are discussed in detail. The main product classes are as follows:

Key Person Cover

Many businesses don’t consider the financial implications of losing a key member of staff. Negative effects can include:

Loss of profits or sales
The cost of finding and training a replacement
Potential loss of customers and suppliers, if the key staff member was their main contact.

Key Person Protection can be life insurance, with or without a critical illness cover option, or income protection cover which a business takes out on certain important members of staff. It can provide some financial stability in the event of a key member of staff being taken critically ill, dying or suffering an accident.

The business pays the premiums, and if the insured person dies or becomes critically ill during the policy term, the policy will pay out the agreed sum or benefit to the business.

This financial pay-out can help ensure the business remains viable, continues to trade, and has the opportunity to find a suitable replacement.

If a business loses a key member of staff to critical illness or death* –

40% of businesses cease trading within one year

46% of new businesses cease to trade immediately

63% of sole traders cease to trade immediately

*Source – Legal & General

Shareholder Protection

The loss of an owner or a partner can cause numerous problems, but many people overlook the destabilising effect such a loss can have on the business itself. When an owner or partner dies, then their stake in the business is likely to pass directly to their family.
If this was a majority shareholder, this could mean that the remaining owners lose control of some or all of the business and have to work with the spouse or child of a former owner.

When do you need Share Protection?

It is always possible that whoever inherits a part of the business may choose to be a silent partner, but there is no guarantee of this. Some will want a more active role and may have very different ideas on what the firm should be doing. Another possibility is that the beneficiary may want to sell their stake.
But if the remaining owners can’t find the funds to buy this shareholding, it could be sold to a competitor.

Of course, the ideal solution is for the remaining owners to buy back the shares, giving the family a cash sum while ensuring they retain control of the business. The question is, will they be able to raise the funds to do this?
This is where Share Protection insurance can help.

Shareholder Protection insurance provides a pay-out to buy back shares, helping owners stabilize the business and ensure it is kept in their hands and not someone else’s.

There are two parts to this insurance:
› A life insurance policy: This will pay out on the death of one of the owners
› A legal agreement: This sets out when and how these shares will be bought back and at what price.

There are a number of ways in which the insurances can be set up – by the Company, for a Company Share Buyback arrangement, or by the individual shareholders, each on their own life.

Advice will be given depending on the individual Company’s set-up and circumstances.

Relevant Life Insurance – Tax Free Family Life Cover

Family life cover paid by the Limited Company
Premiums are Corporation Tax Deductible
No NI cost / No P11D benefit in kind.
No Inheritance Tax Liability

Benefits don’t count toward pensions annual or lifetime allowances
Cover placed in Trust to chosen Beneficiaries
HMRC approved and recognised
Maximum age at expiry of cover 75 years

Business Loan Protection

Most small businesses have some form of debt, be it overdrafts, loans or

mortgages. These loans can help a business prosper and grow. But a significant proportion of small businesses do not have any form of insurance backing this debt. If the owner died, or was taken critically ill, these loans could quickly become a liability. Insurance can help keep the roof on your business, protecting partners, members, directors and employees – as well as their families.

How Business Loan Protection works

Business loan insurance can cover any type of commercial debt. This includes:

› Overdrafts

› Commercial loans

› Commercial mortgages

› Directors’ Loans

Group Death-in-Service

Group Death in Service / Life Assurance protects your employees’ families and dependants by providing a tax-free lump sum to their beneficiaries should they die whilst still in your employment. Usually this is a multiple of the employee’s basic salary. The scheme is set up under Trust and therefore will not form part of the employee’s Estate.

We can provide advice on the most appropriate and competitive Group Death in Service / Life Assurance Scheme for your business, taking into account your organisation’s objectives, specific requirements and budget.

We give access to a panel of high-quality UK providers to ensure the best outcomes for you and your employees and we can assist in communicating this benefit to your employees, as well as providing ongoing support, and especially at the time of any claim.

We can also advise you if you are looking to review your existing Group Death in Service or Relevant Life Assurance insurance arrangements.

Death in Service is a simple and low-cost product, allowing you to differentiate yourself from your competitors by providing this valuable benefit.

The scheme can be registered with HMRC and therefore benefit from corporation tax relief – making it a cost-effective benefit for the employer.

Providing this benefit shows that you are a caring employer and that you care about your employee and the financial welfare of their family/dependants.

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