Key Person Assurance

Small, medium sized and also large companies are often very reliant on key individuals and would struggle to cope if these persons suffered serious illness or died. Key Person Assurance is a policy taken out by the business on the life of such persons, so that a lump sum or series of payments would be payable to help the company through a difficult time.

Policies can be taken out to cover individuals, or groups of key people, and can be set to pay out on death and/or diagnosis of a "critical" illness. These types of plans can offer low-cost peace of mind for the business, should the worst happen.

Shareholder Protection
Shareholder Protection plans are similar contracts, however they are designed to pay a benefit to existing shareholders should another shareholder die or suffer a serious illness, with a view to providing a fund with which to buy back his or her shares. These plans need to be set up in conjunction with a share buyback agreement and suitable trust wording. They offer partners in companies reassurance that in the event of a partner's death or illness, ongoing company ownership is planned and taken care of.

Even if you have existing arrangements in place, it is worth regularly reviewing the levels of cover that you have. As independent financial advisers, we have the pick of the whole market when it comes to selecting financial products. We often find that we can make large cost savings on these types of plans, so if you would like us to review your existing arrangements, or make recommendations for any new business protection plans, please click here to contact an adviser.