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Business Insurance

Relevant Life Insurance

A relevant life insurance policy is very similar to that on standard life insurance or a death in service benefit. If the person(s) insured were to pass away within the term of the policy, a lump sum would be paid to the chosen beneficiary, such as family or dependants.  As relevant life is paid by the company, it is more tax efficient as well as a great incentive for any staff members covered under the policy.

 

As the company pays the insurance premium, it can be considered as a legitimate business expense and therefore tax deductible. The policy would be legally written into trust to ensure that the sum assured is issued to the nominated beneficiary.

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Shareholder Protection

If a shareholder or company owner was to pass away or be diagnosed with a terminal or critical illness, it could be detrimental to the company. A shareholder protection policy could provide a lump sum payment to the surviving shareholders which would allow them to acquire the shares left behind. This would ensure continuity and allow for smooth running of the company. 

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Without this level of protection in place, the remaining shares could pass to a 3rd part who has no experience or involvement in the running of the company, such as a family member of the person passed. 

In addition to providing protection to the surviving shareholders, it also ensures the family members of the deceased or critically ill shareholder are protected financially. This is because the surviving shareholders will be able to purchase the left over shares with the lump sum provided by the insurance company. 

Key Man Insurance

This kind of policy is used by businesses to ensure that they have suitable protection in place should a highly valued employee, or “Key Man” was unable to work. Losing this key man or director could have a detrimental effect on the way the business operates, which could result in a serious decrease in profits. Having key man insurance in place helps to prevent these losses, as well as the additional costs of hiring a replacement and the added stress and workload for co-workers. Get in touch for an in-depth discussion surrounding Key Man insurance.  

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Partnership Protection

Partnership protection is designed to protect your business in the event of the death or serious illness of a partner. This policy will provide a lump sum pay out to the business should a partner become seriously ill or pass away. This will allow the remaining partners to purchase the outstanding shares to ensure that the business continues to run smoothly. Without this level of protection in place, the business is at risk as the shares of the seriously ill or deceased partner could be passed to their family. In most cases, the family have never had any involvement in the running of the business. This policy therefore protects the remaining partners, as well as the family of the affected partner. 

Business Loan Protection

It is quite common that a business will take out a business loan for any number of reasons. The responsibility to repay the loan usually lies with an owner or director of the business. So, if anything was to happen to any of those people, the business needs to ensure that it has cover in place to ensure that there are funds to repay the outstanding loan(s). This gives the business one less thing to worry about in the event of the death or serious illness of a key person in the business who is responsible for maintaining the loan repayments.

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Business Details
7 Douglas Road
Services
Useful Links
Bacup
Lancashire
OL13 9PR
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YOUR HOME/PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT. THINK CAREFULLY BEFORE SECURING ANY OTHER DEBTS AGAINGST YOUR HOME.

The Financial Conduct Authority does not regulate some forms of Buy to Lets

There may be a fee for mortgage advice. The precise amount will depend upon your circumstances and will be agreed with you before proceeding, but we estimate it will be up to £595

McCauley Young trading as Octopus Financial is an appointed representative of HL Partnership Limited, which is authorised and regulated by the Financial Conduct Authority.

Office Address: 7 Douglas Road, Bacup, Rossendale, Lancashire, OL13 9PR

The guidance and/or information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK

© 2021 Octopus Financial

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