Protect what

Business Protection

What would happen to the business and/or people’s families in the event of the death of a key employee, partner or director? Business owners and co-owners need to consider what would happen to their share of the business and the business if they died prematurely.

Co-Director or Partnership Insurance

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

Questions To Consider include:

1. Stakeholders: What would happen if a Business Co-Owner died prematurely?

  • Would you maintain control of the business?
  • Do you have the funds to buy back their share of the business from their family?
  • Has a plan been formalised?

2.  Families: What would happen if you died prematurely?

  • Would your family take on your share of the business?
  • Would the remaining shareholders have the funds needed to buy your share back from your family?
  • Has a plan been formalised?
Employee (Keyman & Death In Service) Protection

Keyman Insurance – This 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. 

Death In Service Cover-

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

Pension Term Assurance

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

Estate/ Inheritance Tax Planning

Without careful planning an individual’s estate could face a significant tax bill on their death. It is possible to put a life insurance plan in place to lessen or eliminate the potential tax bill.

This lump sum to meet an Inheritance Tax liability on the death of the insured. Inheritance Tax is calculated on the the total assets of the deceased e.g. family home, bank deposits, shares etc. hence, the tax liability, can be substantial and have a huge impact on family members.

Estate planning and the issue of Inheritance Tax forms an important part of any Financial plan. Help us deliver peace of mind to you and your family, optimizing the amount that can be passed on in a tax-efficient manner.

Don’t let your financial situation worry you! If you are unsure whether you are adequately covered or don’t have any in place, get in touch today. We can arrange a complimentary initial consultation with one of our friendly Qualified Financial Advisors.