A Successful and Stable Business

As a business owner, this is what you work every day to achieve. Steady growth, great cashflow, happy employees and satisfied customers is what you strive for.

Unfortunately, life and business don’t always go the way we want them to. Key employees get ill and need to take time away from work; partners, directors or owners die and so the structure of a business can change, sometimes overnight.

Business Protection is there to help you continue with ‘business as usual’.

Many business owners think that arranging business protection is a lengthy and complicated process which puts them off looking into it. In fact, the principles are similar to most other types of protection. With the help of an experienced Protection Adviser, the right level of cover can be arranged that can protect your business and your family from not realising the full value of your shares should something happen.

A recent survey of SME’s by Legal & General (State of the nation’s SME report, sixth edition 05/2019) showed that 52% of the UK’s small businesses think they would cease trading in less than a year, should a key employee die or be diagnosed with a critical illness and unable to work.

Additionally, 51% of companies surveyed have some form of business debt yet only 2 in 10 use an insurance policy as security

Putting in place a business protection plan can be less costly than most business owners think, not putting one in place can be very costly indeed.

So, what are the main forms of business insurance:

Share Protection

Helps business owners buy out the shares of a partner or director who has died or becomes terminally ill and life expectancy is less than 12 months, or critically ill, if that option is chosen.

Key Person Protection

Helps safeguard a business against the financial effects of death, terminal illness (if life expectancy is less than 12 months), or critical illness if chosen, of a key person.

Business Loan Protection

Helps a business pay an outstanding overdraft, loan or commercial mortgage, should the guarantor die or become terminally ill and life expectancy is less than 12 months, or critically ill, if chosen.

Relevant Life Plan

A life insurance plan that is owned and paid for by the business for the benefit of Directors’ and employees’ beneficiaries. A Relevant Life Plan helps employers provide an individual death in service benefit for themselves and their employees.

Group Private Medical Insurance

Many businesses also see the benefits of offering Group Private Medical Insurance to their employees. By having a Group Private Medical Insurance plan in place, you are offering a valuable benefit to your employees. It also means that if a member is injured or falls unwell, you can get them back to work as quickly as possible, limiting the effect on your business.

If you would like to discuss protecting your business, please contact Steve Johnson | Director | Protection Adviser on 02382 352500 or email steve@reallifeadvice.co.uk

Questions for you as a business owner to consider

  • Do you have employees, including you, who are essential to the growth & profitability of your business?
  • Would your business be disrupted if your key employee(s) were to unexpectedly either die or suffer a long-term illness?
  • Would you struggle to fund buying a fellow shareholder’s shares from their heirs if they died suddenly?
  • If a director/shareholder passed away, could your business end up with a shareholder/decision maker who may not share the same values and goals or act in the best interests of the business?
  • Would any director’s loans need to be repaid immediately upon their death?
  • Does your business currently rely on bank borrowing?
  • Might your bank respond negatively to a key person/owner either dying or becoming suddenly incapacitated?

If the answer is ‘YES’ to any of the questions above you may well benefit from a no cost, no obligation conversation with one of our business protection expert advisers

Please contact Steve Johnson | Director | Protection Adviser on 02382 352500 or email steve@reallifeadvice.co.uk to discuss your Business Protection requirements.

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Call 02382 352500 for expert advice today.

Real Live Advice Limited is an appointed representative of Quilter Mortgage Planning Limited which is authorised and regulated by the Financial Conduct Authority.
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