Also known as ‘key man insurance’, this can compensate a business for financial losses arising from the death, or extended incapacity, of a specified employee or director.
Traditonally financial advisers tend to look after personal finances but if you are a business owner, a sole trader or a partner in a business then you will have other needs that are seperate to your personal financial planning.
Your business may be your main asset, it may be your only form of retirement planning and it is likely to be providing yourself, your family and your employees with a source of income. As a business owner you will need to consider other scenarios aside from your personal plans:
- What happens if one of the main people in the business dies or becomes seriously ill?
- How will it affect the business and the families?
- Have you maximised your tax reliefs through the business with Pension Planning?
- Have you looked at relevant life plans for your directors and staff?
- What about workplace pensions?
- What about commercial finance?
- Are your directors/partners loans covered with life assurance?
- Where do the shares go on the death of a shareholder or a partner?
Owning your own business is a great challenge and very rewarding but if you havent got the adequate safeguards in place, you could be putting your future, your families future and your business' future in jeopardy.
Sarah Hogan is our business financial planning specialist, why not have a meeting with her today and ensure you have all your ducks in a row!
Call KBA on 01942 889883 to schedule a meeting.
This can provide a business partnership with the funds to ‘buy out’ or compensate the deceased’s dependants, should a business partner die.