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Life Assurance

Proceeds from the policy could help ensure that key individuals are replaced, any business debts are repaid and shares are purchased to ensure continuity. Having a business life assurance policy in place could help reassure customers and suppliers that the business is stable. With value added benefits, we can provide you with a policy that helps you understand your own and your staff’s health and give you and your staff incentives that keep them and you motivated. You can get something back, even if you never make a claim.

 

Overview

If a business owner dies or suffers a serious illness, lenders may have the right to demand that any outstanding loans are paid back. These could be difficult to pay off at short notice. Some business loans may also have personal guarantees which means that the guarantee could be used by the bank and put personal assets such as your family home, at risk. Life assurance for loan protection provides a lump sum to cover business loans. Proceeds from the policy could help ensure that key individuals are replaced, any business debts are repaid and shares are purchased to ensure continuity. Having a business life assurance policy in place could help reassure customers and suppliers that the business is stable. Please contact us for an initial discussion of your requirements

 

Who is covered?

Anyone who has guaranteed these debts – usually the owner, but can be a partner or director of the business.

Who benefits?

The benefits are paid to the business to allow debts to be repaid at a difficult time. However it is common to put the proceeds in trust so that the sum assured is paid directly to the lender.

 

Ways to set up the policy

Life assurance

Life Cover provides a lump sum cash payment if the person covered dies or is diagnosed with a terminal illness (with a life expectancy of less than 12 months).

  • You can choose from guaranteed or reviewable premiums, to suit your circumstances
  • The option to increase your cover in the future, such as when you increase your loan or mortgage
  • You also have the option to add serious illness cover – which has the benefit of protecting you and your family in life, not just in death.
  • Life cover for people with HIV*

    o Max £250,000 for a maximum policy term of 10 years

 

Life with serious illness cover

Adding serious illness cover to a life assurance policy gives you protection against the financial impact that a serious illness can have on your life and your business. Benefits can be used to fund additional resource ensuring the business continues to trade if a key individual is unable to work due to serious illness

  • Premiums can be guaranteed or reviewable, depending on your requirements
  • A lump sum is paid on diagnosis of a disabling condition or death
  • Benefits can be used as the business sees fit, such as to repay loans or buy out a partner’s share of the business

 

Mortgage protection cover

Mortgage protection assurance will cover your business mortgage payments following the death of the person whose life is insured.

  • This is a fixed-term policy – and you can choose a term to tie in with the term of the mortgage or any other time frame to suit your requirements
  • You can choose whether your amount of cover stays the same or decreases as you pay off your mortgage
  • The premiums can be guaranteed for the full term of the policy, so they won’t increase. Reviewable premium options are also available

 

Income protection

Running your own business can be daunting when it comes to financial risk. We can advise on policies that could start paying your benefit from seven days of being incapacitated, to give you greater financial security. Income Protection Cover gives you a monthly tax-free income, which can be used to help pay your bills, your mortgage or even medical costs whilst you recover.

  • The insured person will receive a monthly income until they can return to work, they reach retirement age, or they die
  • For some types of income protection policies, you could get a recovery benefit which gives you access to up to £2,000 worth of specialist care and support to help aid your recovery and return to work
  • The cover is based on a percentage of the individual’s annual income (including benefits) – usually 50%*
  • The monthly income payments can be fixed, or index-linked to increase by a fixed percentage each year
  • You have the option to fix your premiums throughout the policy term, regardless of your claims history, so they won’t go up
  • Payments are deferred for a pre-agreed period; during this time, you’ll be expected to cover your loss of income from other sources

    *If self-employed, your income is your trading profits for the last tax year.