Have you considered how to protect your business? Do you know what would happen to your business and its profits should a key member of the organisation, such as a shareholder or director suffer a serious illness or die?
As a business owner, you need to have a good understanding of the company’s current financial position and be able to plan effectively for the future. Often known as succession planning, understanding the value of key members of your organisation and how changes to their circumstances could impact the business, is paramount.
For more information, please read our Business Protection Guide.
If a sole trader employs key people in their business, then additional consideration should be given to Key Person Protection.
On the death of a partner, their share will pass to their estate and technically the partnership will be dissolved.
A partnership agreement can prevent this. It is often in the remaining partner’s best interest to buy the deceased’s share. This means that they need a Partnership Assurance Protection plan in place.
A business agreement can be put in place, that in the event of one shareholder’s death the proceeds of a life insurance plan can be paid to the remaining shareholders. These funds are used to pay for the deceased shareholder’s interest in the business from his or her estate.
This means the shares remain within the company, but the beneficiaries of the deceased shareholder, receive the monetary value of those shares.
Critical Illness Protection
Business partners can protect their business, should one partner be diagnosed with a critical illness. Critical illness protection can provide a lump sum on diagnosis of a specified critical illness, to be paid to the partner who is unwell. They would then give their business partner their interest in the business. Downton & Ali Associates can help you evaluate your business needs and create a comprehensive plan to protect the interest of all parties.
Downton & Ali Associates business consultants can help you evaluate your company’s business needs and arrange a comprehensive plan to help protect the shareholders and key person/s within your organisation.
Downton & Ali Associates business consultants can help you evaluate your company’s business needs and arrange an insurance policy that suits your needs.
As well as protecting your employees when they are unwell, it also helps them lead a healthier life. This means that they don’t have to claim to benefit.
Find out more by calling Brian Downton, Dartford’s Protection Champion on 020 3021 0075 or email us at email@example.com.
If you have any questions, or if there’s anything you’d like explained, please speak to one of our team on 020 3021 0075 or email us at firstname.lastname@example.org
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