It is taken for granted that as a business owner, you will insure your cars and your equipment against accidents and the like. This also may include compensation for loss of profits as well as replacing the asset in question.
It is therefore somewhat surprising that many business owners choose not to insure their company's cash flow against loss of key members of staff to death or illness. You may be surprised as to how inexpensive it can be to provide this valuable protection and therefore ensure the company's long-term survival. It is worth also remembering that it is not always the directors and shareholders who need this type of protection.
Whether it be shareholders in a limited company or members in a partnership, it is often the case that they will need protection against the impact that the death of one of the shareholders or partners might have on the business.
Having worked so hard to make your business a success, it would be a crying shame for the business to fail due to the lack of suitable protection for this type of situation. It is common that many business owners fail to give proper consideration of what the situation would be should this occur and how it may affect the financial viability of the business. We are able to arrange practical and affordable planning to cover this type of eventuality.
A Relevant Life Plan is a term assurance plan available to you as an employer to provide an individual 'death in service' benefit for your employees. It is designed to pay a lump sum if the person covered dies or is diagnosed with a terminal illness whilst employed during the term of the plan.
A Relevant Life Plan is paid for by the employer and could be suitable in the following circumstances:
You are looking to provide death in service benefit but have too few employees to set up a group scheme You are a business owner or director wishing to provide their own individual death in service benefits without taking out a scheme on all employees You are a high earning individual, such as a director, and you do not want a death in service plan to form part of your 'lifetime allowance'
Group Death in Service life cover is the most common employer-sponsored benefit in the UK. For many low-to-middle-income people, it is their only life insurance provision.
The death of a main breadwinner within the family may put significant pressure on the family concerned, and as a result they may suffer real financial hardship. To have peace of mind that the family left behind will be provided for is a valuable benefit to any employee. By providing your staff with a benefit in the event of this happening demonstrates that you are concerned for the well-being of your staff, which can help to improve the employee/employer relationship.
There are a wide variety of options available to you, which means the right plan can be constructed for your company. This type of policy is a low-cost option to provide life cover for employees, as the premiums paid by the company are usually allowable as a business expense. The company will therefore be able to receive Corporation Tax relief on the premiums, which can further reduce the real cost for your company.
Group Death in Service schemes are set up under an appropriate Trust and therefore should not form part of the member's estate, and under current legislation they are not subject to Inheritance Tax or Income Tax.
To discuss your financial planning requirements or to obtain further information about our services and how we could help you, please contact Antonine Investment Managers, telephone 01324 478 248 or email: firstname.lastname@example.org We look forward to hearing from you.