The loss of a key person could cause severe financial problems for a business. The key person’s specialist knowledge, skills or expertise could make them vital to the successes of the business as well as being difficult to replace.
A key person is not necessarily a majority shareholder in the business; they may be a top salesman, senior manager or someone with very specialist technical expertise. However their loss will certainly have the potential to negatively affect the business’s financial status or future profits.
We aim to produce a strategy that will ensure the long term future of your business and this will start with a discussion to identify the individuals in your business that are ‘key’ and who may been to be insured. We will then discuss the most appropriate type of policy available, on what events the policy should pay out e.g. death, serious illness etc and the duration of the policy. Your decision as to which direction to proceed in will be largely dependent upon the needs of the business, taxation implications and budget. This will then be followed by a search to source the most suitable provider.
We will also discuss with you the taxation implications of key person assurance and how it can be set up in the most tax efficient manner.
Effective business protection planning should ensure the continuation of your business - as you had previously known it - in the event of one of your key people being ill or indeed dying.
