Death and serious illness – nobody likes to think about it. However, as a business owner it is important to consider the impact should you or a key employee die or be unable to work for a significant period due to illness.
What would happen to your business? The consequences are varied and could include an impact on new business, profits may take a hit and the business may incur significant recruitment costs in finding a replacement. Your business may even need to cease trading.
You may also want to consider the impact on the individual’s family. Would you want to provide financial support to the family of the employee?
Fortunately, there are a number of insurance products available that can help provide financial support to your business and employee’s families in the event of death or critical illness. Key Person insurance can provide financial support to the business on the loss of a key employee and can help cover some of the costs incurred, examples of which are detailed above. If your business has multiple shareholders, Shareholder Protection can provide a cash sum to allow the remaining shareholders to purchase the shares of the deceased individual. Relevant Life cover can provide a lump sum benefit to the family of a deceased employee, while also providing tax benefits to the business.
Your financial adviser can help you determine what products would be suitable for your business and to help you calculate the required cover. You can then feel reassured that your business will be protected should the worst happen.
Written by Chase de Vere, www.chasedevere.co.uk
Chase de Vere provide independent financial advice to individuals and businesses across the UK and have done so for almost 50 years.
Please note that this article does not constitute financial advice. Should you require advice, please contact Chase de Vere or another adviser.
