Business Protection

DEBT

BUSINESS LOAN PROTECTION

Just as you would cover a mortgage with personal life insurance, you can take out business loan protection (which is sometimes taken out as life and/or critical illness cover) to cover the full amount of the loan
WHAT IS BUSINESS LOAN PROTECTION?
Business Loan Protection helps you pay outstanding overdrafts, loans or commercial mortgages should the guarantor die or become terminally or critically ill during the policy term.
HOW DOES IT WORK?
CONDITIONS WE CONSIDER
DETERMINING THE LEVEL OF COVER
TAX
TRUSTS

PROFIT

KEY PERSON PROTECTION

If a key person dies or suffers a critical illness during the policy term, Key Person Protection pays out a lump sum ensuring your business can continue to meet its continued financial needs.
WHAT IS KEY PERSON PROTECTION (PROFIT PROTECTION) ?
Should a key employee fall terminally or critically ill or die during the term of the policy, the protection will cover financial loss such as reduced sales, loss in profit, recruitment costs, increased workload for remaining staff or disruption of development plans.
HOW DOES IT WORK?
WHO IS A 'KEY PERSON'?
HOW TO RECOGNISE A KEY PERSON?
DETERMINING THE LEVEL OF COVER FOR A KEY PERSON
TAX TREATMENT OF PREMIUMS
TRUSTS

PARTNERSHIP

PARTNERS’ SHARE PROTECTION

Partners’ Share Protection provides money so that should one partner die or suffer from a terminal illness, the remaining partner(s) in the business may be able to afford to exercise an option to buy the deceased partner’s interest from his or her estate. Provision can also be made if a partner/director suffers a critical illness.
KEY ISSUES FOR PARTNERS TO CONSIDER IF NO PROTECTION IS IN PLACE
Where a share of a partnership has passed to the estate of a deceased partner, the family has two main options:

  1. A member of the family could take over the deceased’s position as partner.
  2. The family could realise the value of the interest by selling it.


Neither of these avenues is problem-free. Commercial experience, age, qualifications, ability, commitment or other reasons could prevent any members of the deceased’s family being capable of becoming a partner.

If the family of the deceased wishes to sell their interest in the partnership, the remaining partner(s) may find themselves working with an unwelcome new partner. Also, it may be difficult to find buyers which could lead to financial problems for both the family and the business.
HOW DOES PARTNERS’ SHARE PROTECTION WORK?
DETERMINING THE LEVEL OF COVER
WHY DOES A FORMAL PARTNERSHIP AGREEMENT MATTER?

CROSS OPTION AGREEMENT
TAX
TRUSTS

PROTECTION

SHARE PURCHASE PROTECTION

WHAT IS SHARE PURCHASE PROTECTION ?
The loss of a business owner may destabilise the business and can quickly lead to financial difficulties. LLP, Partner, Director Share Protection means if the worst does happen, the remaining partners, directors or members could stay in control of the business.

Share purchase protection is a life or life and critical illness policy that allows business owners to buy the insured shareholder’s interest in the firm should one of the business owners die or become either terminally or critically ill.
HOW DOES IT WORK?

LIFE

RELEVANT LIFE PLAN

A Relevant Life Plan is a term assurance plan available to employers to provide an individual death in service benefit for an employee, designed to pay a lump sum if the employee dies or is diagnosed with a terminal illness during the policy term (the latter if terminal illness cover is chosen). The Relevant Life Plan is paid for by you the employer.
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