Business Protection Plan
Business Protection helps to make things right when things go wrong. Business Protection gives you and your business a sense of financial security, even if the worst happened. When a business loses a key employee, a shareholder or a partner, the consequences can be dramatic. Profits can fall and loans might have to be repaid at short notice. At worst, the future of the business can come under threat. Businesses need to know that even if the worst should happen to someone vitally important to the business, they’ll have the means to stay on track. Have you ever considered about having outstanding business loans and becoming critically ill or dying too soon? Have you ever stopped to think, what might happen, if you or your business partner becomes critically ill or dies? Have you ever thought, what might happen, if you or any other key person becomes critically ill or dies? If your answer to these questions is yes, please read on.
Key Persons Business Protection Plan
Key person means a person who directly contributes to the profit of the business. Key persons may include an owner, a director, a founder, an entrepreneur, an employee with specialist skills or a sales executive. If a business loses a key employee through death or serious illness, there could be a significant financial loss to the business. The business will then need a cash injection to cover the loss in profits as well as the cost of finding and retraining a new key person. Here comes our Key Persons Business Protection Plan, which can be arranged to provide a cash lump sum if a key person dies or diagnosed with a critical illness. The claim cash payout can be used by the business to makeup the loss of profits or recruiting and training a new key person for the business. Key Persons Business Protection Plan is taken out by the business on life of another basis. The policy premiums are paid by the business itself on behalf of the key person and the good news is that the premiums are treated as a business expense & are tax deductible.
Shareholders/Partners Business Protection Plan
Shareholders/Partners Business Protection Plan gives you security, to keep ownership of the business, in the hands of those, who have built it. If you or one of your shareholders or business partners cease to be a shareholder or a partner due to the death or a serious illness, your business could possibly be left with some serious problems. In case of suffering from serious illness, the shareholder or the partner may not be able to work anymore and in the case of death, the deceased shareholder’s or the partner’s next of kin may not prove to be a suitable business partners for the future, creating serious decisions making problems for the remaining partners.
The solution to these problems is that the business should have a cash lump sum to buy-out the business share of the seriously ill or deceased partner. Here comes our Shareholders/Partners Business Protection Plan, which can be arranged to provide a cash lump sum if a shareholder or a business partner dies or diagnosed with a critical illness. The claim cash payout can be used by the business to buy-out the business share of the seriously ill or deceased partner and hence keeping control of the business. Shareholders/Partners Business Protection Plan is taken out by each shareholder/partner on own life basis and may be placed in trust for the benefit of the other partners under Cross Option Agreement (Double Option for Death and Single Option for Serious Illness). The policy premiums are paid by the business itself on behalf of the shareholders or partners and the good news is that the premiums are treated as a business expense & are tax deductible.
Business Loans Protection Plan
Many businesses borrow to fund their future plans. The borrowing may be in the shape of business loans, directors’ loans, overdrafts or possibly directors may have made loans to the company themselves, either by cash injection or by leaving salary, bonus or dividends in the business. Business Loans Protection Plan simply provides the business with a cash lump sum to repay the business loans if the insured person dies or diagnosed with a critical illness. The policy should be set-up to reflect the terms of the borrowing and can be structured as either a level term or decreasing term plan. Business Loans Protection Plan is taken out by owners/directors/key persons of the business on own life basis and may be placed in trust for the benefit of the business. The policy premiums are paid by the business itself on behalf of the life insured and the good news is that the premiums are treated as a business expense and are tax deductible.
Relevant Life Policy
A relevant life policy is a death in service benefit, which provides a lump sum money on the death of an employee in a tax efficient way. The lump sum money is paid to the deceased person’s family for their future financial needs by setting up an appropriate discretionary trust for the beneficiaries. Relevant life policies are an alternative to group life schemes for small businesses that do not have enough number of eligible employees to warrant a group life scheme.
Who Can Have A Relevant Life Policy?
Relevant Life Policy can only be affected by employers for their employees and is funded by the employer itself. The employer may include a limited company, partnership or a sole trader. Directors of a company are also treated as employees for this purpose. However, partners, LLP members and sole traders are not employees. To be eligible one has to be an employee of the Limited Company/Partnership/Sole Trader.
Benefits of Relevant Life Policy
> A cheaper way to buy life cover, save up to 50% on premiums.
> Premiums paid are treated as an allowable business expense.
> Premiums paid are free of income tax and corporation tax.
> Premiums paid are free of national insurance contributions.
> Benefits paid are free of income tax and inheritance tax.
> The scheme is approved by HM Revenue and Customs.
Reasons Why You Should Seek Advice From Us
Being an independent firm, Rainbow Associates is not tied to any one product provider. In order to find: a right product, from a right company, at a right price, we being qualified and authorized insurance advisors, have access to a wide range of insurance companies. Since treating customers fairly is our core value, we therefore perform an extensive market research in arranging the top rated insurance products, from top rated insurance companies at competitive prices.
As insurance products are very complex and so many different to choose from, we understand that it is difficult for you to choose the best cover on your own. Many people make the mistake of simply buying the cheapest cover they find and then discover that they are not able to make a claim. However, you need not to worry anymore, because we at Rainbow Associates, know the insurance business inside out. You can shift all of your hassle and worry to one of our insurance advisors, who will do all the hard work for you from finding the best quote to filling in and submitting all the forms to the insurance company as well as chasing the insurance company to underwrite and accept the cover as soon as possible.
If you want to benefit from our expertise and need help and advice from one of our experienced insurance advisors, then you should fully complete the Enquiry Form provided at the bottom of the page, so that one of our insurance advisors can contact you to make an appointment to discuss your insurance requirements at a time convenient for you.