Business owners may also wish to set up life assurance policies for employees. The main areas that Business owners look to protect are as follows:
Key Person Insurance
This type of plan would pay a benefit if a key person dies or is unable to work. The benefit can be used to replace the insured individual or to cover any loss in profits.
Shareholder Protection
If a stakeholder such as a partner or shareholder dies, this type of protection allows the survivors to buy back the deceased share of the business. Without this type of cover the assets in the business would usually go to dependents, which may not be suitable for the business.
General Employee Benefits
Many businesses look to offer their staff benefits such as life cover, private medical insurance, income protection or critical illness cover. This is usually key to hiring and retaining the best staff.
Loan Protection
This type of policy is used to enable a business to pay off a debt such as a directors loan or settle a debt where a personal guarantee has been offered. They will usually be set up to pay out in the event of death or critical illness.
Relevant Life Insurance
This is a tax efficient way of offering providing life cover to directors or employees. This will generally be allowable as a business expense.
