SMALL BUSINESS - LIFE INSURANCE QUOTES - ENQUIRY FORM
Small Business Insurance Quotes - SUMMARY
You have probably insured your Stock, Building Premises, Vehicles & also have Public Liability etc.
> What if a Key Director or Executive of a small business were to die or be critically ill ? How would your business survive?
Key personnel are someone who brings money into the business, it may be someone who has specialist skills or knowledge or it may be someone on whom the business depends for loan finance. Examples of a key person could be: Sales Managers, Company Directors or say Technical IT Specialists.So to make sure you get the correct Advice means the Adviser assesses what your Business may need, and compares Life Insurance Providers for the Business protection cover that suits your needs best. Always answer questions as best you can and disclose any existing medical conditions when asked. If you don't give the full facts, you could invalidate your Insurance Policy and the Insurance company won't pay out.
Key Person Insurance
Keyman Insurance [otherwise known as Key Person Insurance, Key Man Insurance, Key Personnel Insurance policies] is an insurance designed to help compensate a small business for the financial loss on the death, long term sickness or serious critical illness of a key person. On any events as just specified, a lump sum or income may become payable to the business to use to compensate for the loss of that key person. Other factors -
* The cost of training or recruiting replacement staff.
What else should a Small Business consider in working out Key Man Insurance ?
Proportion of Business Profits - Take into account the keyperson's salary, annual profit or the time it could take to replace them.
Multiple of Income - The key person income is multiplied by a factor, normally say 5 x 10 but dependant upon their age.
Term - Keyman Cover can be effected by way of a term life insurance policy and this term will depend on individual circumstances.
Taxation position - We would recommend that your local inspector of taxes is consulted prior to the inception of a policy to understand your individual tax position.
Shareholder Protection or Share Protection helps provides Insurance for the financial loss on the death, long term sickness or critical illness thence retirement to give the remaining partners / directors a lump sum to purchase the shareholding from that shareholder or the deceased's estate. A suitable Shareholder Insurance policy effected alongside a legal partnership / share agreement could help prevent the following issues:
* A shareholding may force a change in the balance of control of a Small Business or Company.
Small Business Trusts & Legal Agreements
Legal Agreements - Small Business protection policies should be written to reflect the requirements of the partnership / shareholder / key person agreement. Whilst we are unable to provide specific legal advice we can give generic information regarding the typical agreements used.
Double or Cross Option Agreement - Both parties enter into an agreement where, if the surviving shareholders exercise the option to buy, then the deceased's estate must sell. If the deceased's estate exercise the option to sell, then the surviving shareholders must buy.
Single Option Agreement - Applicable in the advent of Critical Illness or Total Disbility, an option compelling the other shareholder's to buy their shares.
Buy & Sell Agreement - On death the estate is obliged to sell. The surviving partners are therefore obliged to buy.
Trusts - Policy is set up by Trustees in a Trust to ensure policy proceeds get payable for the benefit of other parties
EXECUTIVE INCOME PROTECTION
Executive Income Protection or Key Person Income Protection helps provides a payment to the Company or Small Business that allows the employer to provide a % of their salary in the event of long term illness or accident. This sum is payable for as long as it takes to return to work or plan end. Dependant on the type of cover, this maybe payable to that individual or to the Company to help source new staff until that person returns to work.
small business insurance quotes