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Business Protection

Share Protection

When two or more people own a business between them, and one of them dies, it can leave the remaining owners in difficult financial circumstances. The deceased owners share of the business will pass to their nominated beneficiaries, and in many cases, the beneficiaries will prefer the cash value of their share rather than ongoing participation in the business.

This leaves the remaining owners needing to find the funds to buy out the deceased owners share, something which may not be easy to arrange at a time when financial confidence in the business may be low.

Through the use of suitable Life Assurance policies and Business Trusts we can help ensure that funds are readily available so the remaining owners can purchase the share of the deceased owner.

Key Man / Key Person

Essentially Key Man or Key Person Insurance is ‘loss of profits’ insurance. It provides financial protection to businesses when they lose of the services of a key director or key employee, whether permanently or temporarily, would have an adverse affect on the profits of the business.

Policies can be arranged to provide protection should the insured Key Person die, suffer a critical illness and/or not be able to work through accident or sickness. If any of these events occur the policy pays out the benefits to the business to help pay for, amongst other things, loss of profits or the cost of hiring replacement staff.

Loan Protection

Most businesses borrow money from time to time. Where a business has a bank loan it is often repayable on the death of a business owner and is also usually secured by their personal assets. Should a business owner die, this could result in the sale of their personal assets and the proceeds being used to repay the loan.

A life, or life and critical illness, policy for the amount and term of the loan ensures that in the event of death the loan can be repaid from the policy proceeds and the personal assets of the director(s) remain safe.