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ABOUT
BUSINESS PROTECTION
There are four main areas in Business Protection:
Ownership
Ownership
Protects the business owners and their families by providing funds for a business to buy back shares in the event of the shareholder becoming critically ill or dying.
Profit
Profit
A business will protect its assets such as buildings, liability, machinery and vehicles. However, many businesses do not protect their workforce, particularly their shareholders and key people.
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A business should identify:
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Who the key decision-makers are
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Who is generating revenue for the business
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Who holds the strategic relationships with banks, suppliers and customers
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The impact should these individuals leave the business or die
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How the above would affect the profits and cash flow of the business
Debt
Debt
It is paramount that a director and their family understand the implication of a director’s loan, as personal assets are at stake. Upon death of a director, any director’s loan provided to the company may be repayable immediately upon the death of that director. Having the appropriate Loan Protection in place protects the debt within the business.
Relevant Life
Relevant Life
A tax-efficient personal protection paid by the business that acts as a death in service benefit. The benefit is usually paid tax-free via a trust to the employees’ estate.
Other areas to consider are private medical insurance (PMI) and employee benefit schemes.
The Financial Conduct Authority do not regulate employee benefits.
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