High quality key person insurance services: Business Loan Insurance: Many businesses borrow to grow or invest in expensive machinery or premises. On the death of a director banks often get worried and cancel overdrafts or call in loans. Business loan insurance protects your business from this issue. Executive Income Protection Insurance: In the event of a long term or permanent illness where a director cannot work anymore then paying their wages can become a burden on the business. Executive income protection give the company the required funds to ensure the director can still be remunerated. Discover more details at Key Person Income Protection Insurance .

Taking out keyman insurance is a major financial commitment and understanding the full implications of the purchase is essential. Knowing if the premiums can be deducted from taxes could give an extra boost back into the budget that could then help towards taking out more powerful policies with larger coverage. Depending on location, government regulations may allow certain types of insurance deductions; therefore it is always best to consult with assigned professionals for reliable answers about eligibility requirements and tax deductions pertaining to this type of coverage plan.

When a business loan is taken out, it must be done so with the understanding that there will be a responsible party for paying back the money borrowed. Business loan protection insurance is usually taken out on the individual or group of individuals responsible for repayment of the loan. The purpose of this type of insurance is to provide a level of security and assurance should something unexpected happen to one or more of the shareholders involved in the loan. This could include death, disability, or critical illness – all of which might otherwise leave the company in financial difficulty.

Premium Equalisation: Shareholder Protection Premium Equalisation is an essential aspect of business trust policies. When a group of shareholders decides to take out an own life policy individually, they may need to equalize the premiums paid. This is done to prevent HMRC from considering unequal premiums as a “gift” or “wealth transfer” from those who are paying more to those who are paying less. If HMRC views this as a gift, there could be inheritance tax implications if there is ever a claim.

Also above we mentioned the spouse desperate to sell the shared might sell these to another competitor. Again the remaining shareholders would not want this to happen as again this is a major threat to their business and could lead to a competitor taking over the business. Therefore a shareholder protection policy taken out by each of the business partners giving the shareholders the funds required to by the spouses £1,000,000 worth of shares would stop the above and allow the shareholders to retain control of the business. it will also ultimately mean the value of the shares that they each own will now have gone up in both value and percentage.

When an individual or couple take out a mortgage then in most cases they will protect their mortgage with life insurance or life and critical illness. The same principle should apply for business that have loans, overdrafts or other type of commercial loans. However many business owners overlook and forget to cover any outstanding loans. Business loan protection is very similar to key person cover but rather than the sum assured amount covering the loss of income from the death of a key employee instead it covers outstanding debts.

How much cover to Have? Key person insurance is designed to help protect businesses from the loss of a key individual in the event of death, illness or injury. Calculating how much key person insurance to purchase may seem daunting at first glance, but it can be done if you understand the different quoting methods and calculations used by insurers. It’s important to consider other types of insurance too, depending on the individual needs. For example, businesses in their start-up stages may want to invest in both recruitment cost and business start-up coverage. This will provide extra protection and enable them to get back up and running quickly should something unexpectedly occur during this foundation period of trading. In addition, there are more specialist forms of insurance such as cyber liability or legal defense that can help protect your business from anyone making a claim against you if things don’t entirely go according to plan. Discover more information at Key Person Income Protection Insurance.