Owning your own business probably means you’re overcoming challenges on a regular basis. The idea of planning ahead is unlikely to be new to you but have you thought about business protection and what might happen to your business if:
You or one of the other business owners dies? Who would receive the deceased’s share of the business? Would the other business owners have the funds immediately available to purchase this interest, potentially from the deceased’s family? If this is not the case, there is the very real risk that the business interest could be sold to a third party, or the deceased’s family are subsequently forced to become involved with the business on an ongoing basis.
you or another key person suffers a critical illness or even dies? How would it affect your company’s ability to maintain turnover or generate profit? Would you have the funds available to finance the exercise of replacing this key individual? Are there any debts within the business that would need to be repaid?
There are a range of protection plans and arrangements that can be utilised to safeguard a business and the family of those with an interest in the business for scenarios such as those detailed above.
The cost of business protection may be less than you imagine.
As an example, Andrew, who is a 45-year-old non-smoker and in good health, was able to put in place a plan that would provide a lump sum of £200,000 to his wife upon his death, up to age 65, for a monthly premium under £25. (The actual premium will depend on individual circumstances.)
The amount and type of business protection that you may need will depend on your individual and business circumstances and, all the solutions and advice we can offer will be tailored to your specific financial circumstances and situation.
Business Protection – learn more
If you wish to discuss your own position and the types of protection available, please contact me on 01246 559955.