To help maintain the long term security of a business, in the event of losing key personnel to death, terminal illness, specified critical illness or accident, business protection policies are available to cover such eventualities. Such polices will help safeguard your business against the financial effects of the loss of a key person.
At Fairview Financial, we understand that protection policies are as important for businesses as they are for mortgagors. There are variations of the same policy available to businesses which will alter depending on the emphasis of cover, for example Key Person Insurance is a policy taken out for a specific employee, designed to allow a business to insure it's key people against the risk of them being unable to work due to suffering a critical illness or worse case in the event of death. Other such business protection polices will include shareholder protection, Business Loan Protection and most popularly, Relevant Life Insurance.
Relevant Life Insurance is a term assurance plan available to employers to provide an individual death in service benefit for an employee, paid for by the employer. Directors and high-earning employees will often consider such plans. Previously, the only pre-tax life insurance available was via a group life policy but Relevant Life Insurance is now a very popular plan available to business owners which will also provide them with a tax efficient life insurance. Higher rate tax payers can save almost 50% by paying for a life insurance policy as a relevant life plan.
Group Life Insurance is a policy which is set up by the employers for the benefit of the employees. Similar to group Health Insurance, the employees recognise the benefit whereas the employers can also claim this as a business expense. The policy is simple to arrange and like many group schemes, comes with certain discounts and ease of setting up. Group schemes are also available for income protection and critical illness cover and are usually tax efficient with tax-free benefits. Speak to Fairview Financial to help source the right plan for you at the right price.