Business Protection
As a business owner most businesses understand the need to manage the risks they face every day. They insure their premises, equipment and stock against fire, flood and theft. They insure their vehicles. But many don’t stop to think what would happen if they lost their most important asset – their people.
But with,
May be suitable for,
Please remember tax law may change in the future and will depend on your individual circumstances.
Whether or not your business currently has life assurance, now could be the perfect time to review your situation and see if you could benefit from a Relevant Life Policy.
- Losing a partner or shareholding Director can have a major impact on the success of a business. Could your business continue if one of the owners were to die or suffer a critical illness? Business protection can ensure that:
- The remaining business owners retain continued control of the business
- The estate of the deceased owner gets a fair value for selling their share of the business – and the business can afford to buy them out.
- Any arrangements are set up in a straight forward, tax efficient way
The success of almost all small and medium-sized businesses is dependent on a few people who make a significant contribution. Business protection can provide a cash injection should a key person die or suffer a critical illness. It can also provide a regular income to the business if the key person is temporarily disabled or unable to work.
Loan protection is also a very important element of overall business protection; any outstanding business loans will need to be covered. As well as the Lender usually requiring this cover, many directors may have given personal guarantees and/or used their own residential home as security, so there is the added need to ensure that dependants are protected.
Loan protection is also a very important element of overall business protection; any outstanding business loans will need to be covered. As well as the Lender usually requiring this cover, many directors may have given personal guarantees and/or used their own residential home as security, so there is the added need to ensure that dependants are protected.
A more cost effective way of paying for your life assurance
A relevant life policy is an alternative way of providing a lump sum on death for an individual, without the need to set up a registered group life scheme. The aim is to provide a lump sum benefit on the death of an employee, the result being,- a lump sum paid to your chosen beneficiaries in the same way a personal policy would work
But with,
- no National Insurance liability
- no benefit in kind liability
- the likelihood of the policy premiums being classed as allowable deductions for your business, which may help to reduce any potential Corporation Tax liability
- the policy premiums not counting towards an individual’s lifetime or annual allowances.
May be suitable for,
- high-earning employees who have substantial pension funds and don’t want their death-in-service benefits to form part of their lifetime allowance.
- small businesses that don’t have enough eligible employees to warrant a group life scheme.
- directors of the company providing great savings on premiums.
Please remember tax law may change in the future and will depend on your individual circumstances.
Whether or not your business currently has life assurance, now could be the perfect time to review your situation and see if you could benefit from a Relevant Life Policy.
