Keyperson / Shareholder / Partnership Protection/Relevant Life.
There are a number of different protection policies designed specifically for businesses.
Key Person Protection – this helps safeguard a business against the financial effects of death, critical illness or terminal illness of a key person. This could be the business owner or a key employee. The proceeds from the policy are paid directly to the business to aid the financial costs of losing a key person in the organisation. The policy could help towards the trading of the business whilst you try to deal with the loss.
Business Loan Protection – the policy proceeds are used to pay off any outstanding loans your business may have under personal guarantee. These may include bank loans and director’s loans which need to be repaid upon death.
Partners/Directors Share Protection – this policy is designed to help the remaining partners/shareholder purchase the shares of the business if the business owner was to die, be diagnosed with a critical illness or upon diagnosis of a terminal illness.
Relevant Life Cover – A relevant life plan is an individual, death in service life assurance policy. This policy is available to business owners and employees. This type of policy can offer special tax advantages as the policy is classed as a business expense. The policy would not count towards annual or lifetime pension allowances.
Relevant Life can also be an efficient way to offer employees life cover if your business is not eligible for a group life scheme.