Some of Our Business Clients
If your share of the business is your most valuable asset, protecting it for the benefit of your family is an important consideration. Business protection insurance can not only make life easier and more straightforward for your family should the worst happen, but it also protects your business over the long term.
It gives everyone involved in the ownership of the business a greater degree of certainty ensuring that the deceased's family have timely funds to begin rebuilding their lives and the surviving business owners maintain full control of their business.
It can remove the period of uncertainty, following a business owner's death or diagnosis of a critical illness, regarding the ownership of the business and the potential need to raise bank finance.
What does it cover?
The Ownership Protection solutions we put together can include cover in the form of life insurance policies or life or earlier critical illness policies.
How does it work?
Ownership Protection typically uses a life insurance policy to provide the lump sum capital for the surviving business owners to buy the deceased's share of the business from their family. Alternatively, it can utilise a Life or Earlier Critical Illness policy to fund the necessary share purchase from an owner who has been diagnosed as critically ill.
Allied Financial Consultancy will guide each business owner in taking out an insurance policy to the value of their current share in the business. We'll then advise and assist in how you can set up a specific business trust plus an appropriate Cross Option Agreement.
Should one of the business owners die within the term of the plan, the policy will pay out into the business trust for the benefit of the surviving business owners.
In what can be incredibly difficult circumstances, shortly after a death, the Cross Option Agreement can be activated to make sure surviving owners retain full control and ownership of the business and the deceased's family have a cash lump sum to offer financial security when they need it most.
Key Person Protection Insurance, is designed to protect your business from the loss of one of its most valuable assets - you or your key employees.
What does it cover?
Key Person Protection Insurance, can cover the business in the case of death or critical illness of the employee in question.
We would advise you to consider cover for both. This is because, in our experience, critical illness can have just as devastating effect on a business and is often a more likely scenario.
How does it work?
We'll work through the many different ways of structuring key man insurance / key person protection policies to put together a cost effective solution for you.
Putting it simply if a key employee were to die with an insurance policy in place the proceeds would pay to the company and this could enable them to cover the costs of training a replacement and/or also maintain profits at this time.
Business Loan Protection is designed to enable a business to repay a specified debt if a key employee or business owner dies or is diagnosed as critically ill before the debt is fully repaid.
Business Loan Protection, also known as Business Loan Cover can make sure a business debt secured on business assets or even your family home doesn't put your firm's assets or your home at risk.
The knowledge that your business has loan cover in place can offer peace of mind to everyone involved in the business and to your loved ones, as it reduces the chances of the family home being at risk if it has been offered as security for a bank loan.
What does it cover?
The insurance policies that underlie a Business Loan Protection arrangement can either protect the business against the death of the employee in question or against the death or earlier critical illness of the employee in question.
If your business has borrowings, Business Loan Protection gives peace of mind over the term of the loan, helping to make sure your business is safe: in the event of the critical illness or death, it would be possible for the business to repay the loan with the proceeds of the policy. You can protect most types of borrowings, including bank loans, commercial mortgages and director loan accounts
How does it work?
We will design your Business Loan Protection to repay a specific debt if a key employee or business owner dies or is diagnosed as critically ill.
We'll explain the costs and benefits as part of the process, and recommend the cover best suited to your needs.
Relevant Life Plans (RLP) offer life cover that is also highly tax efficient - in fact, Allied Financial Consultancy can show you how this type of policy may be able to save up to 50% on the cost of a conventional life policy.
A Relevant Life Plan is a simple term assurance available to owners of limited companies and employees of businesses. Set up and paid for by the employer, the Plan will pay out a tax free lump sum (under legislation current in tax year 2016/17) to the employee's loved ones should they pass away during the term of the policy.
Relevant Life Plans make it possible for employers with just a few employees, high earners and Directors to take advantage of 'death in service' benefits.
Unfortunately, sole traders, equity partners of a partnership or equity members of a Limited Liability Partnership cannot take advantage of Relevant Life Plans.
What does it cover?
A Relevant Life Plan pays out in the exact same way as a normal life insurance policy upon the death of the life assured while potentially offering significant tax savings.
Depending on your exact circumstances, you can cover up to 25 times your annual remuneration (salary and dividend) from the business, until your 75th birthday.
How does it work?
Allied Financial Consultancy can advise on a suitable Relevant Life Plan on the life of the employee or owner. We also advise that, because none of the tax breaks are automatically given at source, you will need to liaise with your accountant/tax adviser to ensure that the available reliefs are claimed.
In the event of a claim the lump sum benefit would be paid to the trustees who in turn pay it to the employee’s beneficiaries which would be agreed at outset in the Relevant Life Trust Form.
Allied Financial Consultancy is not able to provide advice on taxation matters. Should you require such advice you should contact a suitable qualified tax specialist / accountant.