Many companies have key personal that are integral to the success of their business. The loss of these employees for even a brief period can have significant effects on profits, continuity and even the long-term viability of your business.

Key person insurance is a type of life insurance policy that is taken out by a business on the life of a key employee. Should the key person die or suffer from a critical illness the policy would pay out a lump sum to the business which could then be used to cover the costs of losing that key employee whilst recruiting and training a replacement.

As a company director, shareholder or partner your business is often one of your most important assets and as such it's important to safeguard the ownership of the company.

If one of your business's owners should die or become critically ill, the business may not be able to continue as usual and their shares could pass to their spouse or family as part of the estate.

By implementing partnership protection or shareholder protection, depending on your company status, you can ensure the future of your business is taken care of. In the event of a valid claim the policy would pay out a lump sum enabling the remaining business owners to purchase the shares, without needing to borrow or disrupt cash flow of the business and ensuring the deceased dependants are compensated appropriately.

Most companies will have financial commitments such as a commercial mortgage, business loans or overdraft.

These liabilities can be protected using a loan protection life insurance policy. This type of plan will pay a lump sum to the business in the event of the death or critical illness of a key person allowing the remaining business owners to settle outstanding loan commitments and continue trading as normal.

A relevant life plan is a type of death in service life assurance policy for owners of small businesses, where it is not viable to set up a group death in service scheme due to the small number of employees. These plans are a tax efficient way of providing life cover for company directors and key employees.

It is designed to pay a lump sum if the person covered dies or is diagnosed with a critical illness whilst employed during the length of the policy. The benefits from the plan are paid to a discretionary trust. The beneficiaries of the trust will usually be the family members and dependants of the life assured.

All the above plans can include critical illness cover for an additional premium and will cover the life assured should they get diagnosed with a critical illness that meets the definitions outlined by the chosen product provider.

Good employees are vital to the success of any business. As a business owner offering your employees a comprehensive benefits package is a great way to encourage staff loyalty, motivation and wellbeing.

Ensuring your employees and their families are well protected in the event of illness, accident or death shows a duty of care and is viewed as a sign of a good employer.  

There are several types of benefits available, allowing you to tailor an employee benefit scheme that suits both you and your workers. Some of the benefit options include;

• Group Life Assurance
• Group Critical Illness Cover
• Group Income Protection
• Group Private Medical Insurance

Many benefits are also tax efficient, so it's worth contacting us for advice ensuring that your strategy is as efficient as possible.