Business protection can help business owners…
… to continue to trade should a key individual die or become seriously ill. Proceeds from a suitable plan can also help ensure that staff are replaced, corporate debt is repaid and shares inherited by a deceased partner’s or director’s estate are purchased at an agreed value.
Consider these scenarios; which of these would damage a business most?
The computer being stolen or one of the directors suddenly dies?
There’s probably already some backup plan in place if the former happened, but in the latter event what would happen to the shares of the deceased director?
In normal circumstances, these would pass into their personal estate and this could create one of a number of consequences.
The remaining shareholders or partner may not have the capital available to purchase the shares or someone from the deceased’s estate may suddenly join the company at board level.
The company may also have outstanding liabilities, such as a bank loan…
How would this be repaid in the event of the death or serious illness of the business owner?
It’s not necessarily just the business owners that need protection. If the company employs someone with specific skills or knowledge, then what might the impact on the business be if that person was to die or become seriously ill? How easy would it be for the business to find a replacement and how much money could the company lose in the meantime?
These are all events that could happen and it may cost you much less than you think to provide a financial plan to counteract the consequences. You may even be able to offset the cost of the plan as a legitimate expense against the taxable profits of the business.
It may also be that a business wants to provide some personal or family protection for members of their staff. This ‘death in service’ type employee benefit is a very popular way of providing staff with life assurance without any cost to them individually. The contributions are paid by the company and these are ‘allowable’ business expenses.
At Cansquared we will help you to understand your own business protection circumstances and objectives and then research the most suitable products and providers to match these.
Cansquared Limited is authorised and regulated by the Financial Conduct Authority. FRN 927062. Cansquared Limited is registered in England and Wales No. 8452816. Registered office: 24 Old Mill Ridge, Wadsworth, Hebden Bridge, West Yorkshire HX7 8RT