Keyman Insurance
Who are the key persons responsible for
the development and smooth running of your business. If any of those persons
were to die or suffer a serious illness, what would be the financial consequences
for you in maintaining the trade or how long would it be before that person
could be replaced and the business restored.
Keyman Insurance is specifically designed to
provide financial support to the insured business through those difficult
times. You should decide on who those key persons are. Make an assessment
of the likely additional costs you will encounter in these unfortunate circumstances
and decide on the level of cover together with the extent of the cover required.
The cover can be provided in respect of a prolonged illness or in the event
of death.
Features:
-
Purpose:
Ease financial burden on business which might arise through prolonged illness
or death of key personel
-
Beneficiary:
Business effects policy for benefit of the business
-
Protection:
Amount contracted for term contracted
-
Savings:
No savings aspect
-
Benefit:
Benefit arising from prolonged illness or death of key person.
Co-Director Insurance
If you are in business with another or others, what are the financial implications
in the event of death or prolonged illness of any one of the partners or director/shareholders.
Many shareholder agreements and
partnership agreements provide that the continuing person will buy out the interests
of the exiting person. While you may wish to do this, it can be a large financial
burden, particularly where the business was reliant on the expertise of the
exiting person in maintaining and developing the trade. The business is faced
with double jeopardy whereby it is required to produce the funds to buy out
the interest at a time when it is struggling to maintain and develop the trade.
Co-Director insurance is available to reduce the level of exposure at these
critical times and provide a lump sum to facilitate the buyout of the interest
while providing financial support to ensure the profitable restoration and continuance
of the trade.
Features:
- Purpose:
Ease financial burden in the event of a buyout arising from the death or prolonged
illness of a partner or director/shareholder
- Beneficiary:
Business effects policy for benefit of the business
- Protection: Amount
contracted for term contracted
- Savings: No
savings aspect
- Benefit:
Benefit arising only from prolonged illness or death of partner or director/shareholder.
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