At The Orchard Practice we know that business is full of surprises, both good and bad. By planning for the unexpected we can help minimise any financial worry so you can concentrate on growing your business and looking after your profit and your cash flow.
We often get caught up in running our business, so much so that planning for unforeseen circumstances in the future sometimes slips down our list of priorities. If you or your staff were not able to work, would it impact on the performance of your business?
Key Person Protection helps shelter a business against the financial effects of death, terminal illness, or critical illness of a key person.
The loss of a key person may lead to in a decline in sales, loss of profit/turnover, wasted time, incurring recruitment costs, and the disruption of development plans or increased workloads for the other staff.
Who is a ‘key person’?
A key person is an employee whose death or continued absence would impact the profits of the business. Key people are individuals whose skills, knowledge, experience or leadership are important to a business’ continued financial success.
Shareholder / Partner Protection provides a business with a cash lump sum if a business owner dies or suffers a severe illness. This lump sum provides the capital to enable the surviving business owners to purchase the deceased’s or incapacitated individual’s share of the business – allowing them to keep control of their business.
Who is it designed for?
In businesses run by unconnected parties (or families where succession is not assured) the death or incapacity of an owner is likely to cause serious disruption to the business and problems for both the business and the family of the owner concerned.
If you have a business loan, your business’s ability to repay that loan could be at risk if a key person was diagnosed with a critical illness or died. In addition, many lenders often make it a condition of the loan arrangement.
Who is Business Loan Protection designed for?
Business loan protection is particularly important for the guarantor. After all, their estate and family’s finances could be used to repay the loan.
A Relevant Life Plan is a life insurance policy available to employers to provide a death in service benefit for an employee.
Who is a Relevant Life Plan for?
Relevant Life Plans are similar to most other types of life cover except they aim to provide a tax efficient benefit provided by an employer for an employee, written in a discretionary with the employee’s family and dependants as beneficiaries. It is very popular with company directors and those wanting to provide an extra benefit to their employees.