Key Person Cover
Does your business have a key individual that would severely affect profits if they were seriously ill or pass away. Perhaps a senior sales person, your fellow director or even yourself? This is where key person cover plays a vital role to make sure your business remains a success.
Essentially it is all about planning for unforeseen events and finding the right way to place a value on the impact of that person being unavailable through illness or death would mean. Once you have agreed the shape and level of cover needed, a life and/or illness policy is then established with the proceeds being paid to the company itself. In the event of accident/illness/death the policy effectively replaces the profits for an agreed period of time to allow the business source a replacement and get back on its feet!
So how does it work? For example, you could allocate a % of the profits, multiplied by the timescale their loss would impact on the profitability and then underpin it with a specific policy or buy a plan that would provide a replacement income for a period of time, whatever you decide on we will structure it in the most tax efficient way possible and remove any uncertainty. Policies taken may be eligible for tax relief, reducing further the cost of any plans entered into.
At Financial Fortress, we have the experience to help identify any shortfalls and recommend suitable and tax efficient plans to meet any needs. Working with you and other experts we will identify weakness to your profitability and effectively mitigate these risks.