Life insurance is just as important in a business partnership or shareholders’ relationship as it is in our personal lives.
Your Falco IFA can talk you through the options and select a policy which provides a good match with your particular needs and your particular business structure.
Shareholder Protection Insurance
Shareholder Protection Insurance is designed to pay out a cash lump sum in the event of one of a group of shareholders becoming critically ill or passing away. It makes provision for the remaining shareholders to buy back the shares of the absent or deceased shareholder providing that there are the appropriate legal arrangements in place to enable this.
Key Man Cover/ Key Persons Protection
The loss of a significant person in your business can be devastating in more ways than one. Business performance can suffer badly, with falling turnover and reduced profits combined with increased workloads for the remaining staff.
Key Person Protection is designed to pay out a lump sum in the event of the death (or diagnosis of a specified critical illness, if this option is selected) of the insured key person during the period of the policy. It is paid as a lump sum which is intended to provide significant help to enable the business to recover. The proceeds can be used to offset or counteract reduced profits or can be used to search for a new person to fill the role in question.
relevant life cover
Relevant life cover represents a tax efficient way for an employer, often smaller employers, to provide life cover for their employees. It is designed to give protection to the employee’s family in the event of their death or diagnosis with a terminal illness whilst they're an employee of the company.
Relevant life cover may be appropriate if:
It is a small business without enough employees to warrant or qualify for a group life scheme.
The employer wants to provide death-in-service benefits to their employees over and above those payable under the main company scheme.
The employees have significant pension funds and want to avoid their death-in-service benefits from forming part of their pension lifetime allowance, or for any premiums to impact their protection from the lifetime allowance.
group life cover
Group Life Cover pays a lump sum benefit should an employee die whilst employed by your organisation.
Group Life Cover is often one of the first employee benefits to be introduced, and is core to any good employee benefits package. It’s very straightforward to understand and is valued highly for the peace of mind it brings to your employees and their families, despite being one of the lowest cost benefits to implement.
Essentially, Death in Service schemes offer employees’ loved ones a tax free payment in the event of an employee’s death. When a claim is made, the policy will pay out regardless of whether or not the death occurs at the place of work.
Typically, the level of cover provided is two, three or four times the employee’s basic gross salary, but this can be tailored. For instance, you can insure a director for a fixed amount, as they may be paid mainly in dividends with their PAYE salary being no reflection of their true take home pay. You may have the option to include company pension scheme contributions in the amount you’re insuring and often you are able to set different levels of cover depending on the employee’s seniority. We are able to help you with advice and research to ensure you’re offering an attractive package in line with your industry.