KEY PERSON PROTECTION
Key Person Protection can make sure that your business is protected with a cash injection if a key employee dies or is unable to work, long term, through sickness or injury or death. A key person would be anyone whose skill, knowledge, experience or leadership contributes significantly to the businesses success.
Payments continue until the first of the following happens:
The person is no longer capacitated
The person recovers & returns to work
The policy term ends
The payment period expires
The person covered dies (lump sum paid)
If a business owner/shareholder dies, his or her share in the business may be passed to their family. Then the surviving business owners could lose control of all or some of their business. The family of the deceased may choose to become involved, with little or no experience of running of the business or could even sell their share to a competitor. A share protection policy can be put in place and in the event of an owner/shareholder dying can pay out a lump sum to buy the deceased shares and keep control of the company.
GROUP LIFE PROTECTION
If an employee needs treatment for an injury or illness or dies while in service, provision can be made quickly to alleviate the financial burden. This type of benefit is valued highly by the employee and is relatively inexpensive to arrange on a group basis. In the event of an employee’s death a lumpsum is paid quickly to their family when they need it most. With health insurance, the policy pays out for the employee to access private care, shortcutting NHS queues, and be back to work quicker.
Benefits for employers:
More attractive benefits package
Premiums may qualify for tax relief
Low cost, normally less than 1% of payroll
Benefits for employees:
Peace of mind for the family
Paid out quickly & inheritance tax free
Not taxed as a benefit in kind
BUSINESS LOAN PROTECTION
With business borrowing’s such as a Directors loan, commercial mortgage or a business loan this protection will pay out a lump sum in the event of a key person dying or suffering a critical illness (if chosen). Directors loan accounts should always be paid off in the event of premature death, without this type of protection where would the funds come from..?