Insurance for Businesses Return to all services
If you are reading this it is likely that you have been thinking about whether your business needs protection or if the business protection you have in place is adequate.
There are different types of policies that can be used to help ensure the continuation of your business in the event of the death of key people, or their contraction of a critical illness.
Key Person Protection
This pays out a lump sum amount in the event of a key person’s death. For an extra premium these policies will also pay out in the event of the key person becoming critically ill. This lump sum could compensate for the consequential lost profit and used to help recruit a replacement.
In the event of the death of a partner or director share protection allows the remaining partners or directors to stay in control of the business. The policy pays out a lump sum which can be used towards purchasing the deceased’s interest in the business. Critical illness cover can also be added to these policies.
Business Loan Protection
If a business owner is a guarantor on a business loan this type of policy can be used to repay that debt in the event of their death or contraction of a critical illness during the term of the policy.
Relevant Life Plans
These policies provide an individual death in service benefit for an employee. It is designed to pay a lump sum if the employee dies whilst employed during the term of the policy. The premium is paid by the employer.
These schemes can be particularly useful to directors who would like to provide their own individual death in service benefits without taking out a scheme for all employees.