Shareholder, Partnership and Key Person Protection
Shareholder, Partnerships and key Person Protection
Shareholder and Partnership Protection is different to Key Person Protection because this is about making sure that the value and the control of the business passes to the right people upon death or retirement. Without a well-thought out plan, the death or unplanned retirement of a shareholder or a partner has the potential to destroy a business or at least hamper its future growth and profitability.
81% of businesses have a key person, whose loss would seriously impact the profitability/survival of the business.
67% of these businesses have no insurance to protect the loss of profit that this could result in or the additional cost of replacing that person. In fact, businesses are more likely to insure the photocopier against breakdown (29%) that they are to insure a key person on death (15%) or critical illness (13%).
The impact of losing a Key Person in the company
Key Person Protection is not just about setting up a life assurance policy. There are a number of questions that need to be answered beforehand. Is there a need for business protection? Who are the key people? What would be the impact of the loss of a key person and how much and what type of cover is required? Who should take the policy out? What are the tax consequences?
This is a vital area of business financial planning. Once these questions have been answered, our financial planners will find the right product for you.