What is Business Protection?
Business protection helps protect your business from the financial losses incurred if a key person or owner of a business should die or be diagnosed with a terminal or critical illness (if chosen) during the length of the policy. Terms and conditions apply.
There are different types of Business Protection:
- Key Person Protection (profit protection)
This helps safeguard a business against the financial effects of death, terminal illness and critical illness (if chosen) of a key person. The policy proceeds are paid directly to the business to be used to help replace the key person and help cover the loss of profits that may occur. The policy proceeds could help your business to continue trading.
- Business Loan Protection
The policy proceeds are used to help pay off any outstanding loans your business may have should the guarantor die or be diagnosed with a terminal or critical illness (if chosen). These will include bank loans or director loan accounts which need to be repaid on death.
- Directors’/Limited liability partnership share protection
The policy proceeds are used to help buy the share of the business if a business owner is diagnosed with a terminal illness, critical illness (if chosen) or dies.
Relevant life plans
We also offer Relevant Life Plans. A Relevant Life Plan is an individual death in service life assurance policy available for directors and employees. The plan offers some very special advantages, most notably tax efficiency. While the life cover is personal to you and your employees, the policy counts as a business expense so it’s tax deductible and does not count towards annual or lifetime pensions allowances. It is also a cost-effective way to offer life cover to your employees if your business is not eligible for a group life scheme.
If this page has raised some questions for you, please contact us for further information about the benefits and limitations of business protection and how your business could benefit from this type of cover.