Having keyman protection in place will help your business from suffering, when a key person is diagnosed with a critical illness and is unable to work or, in the worst case scenario, dies.
What if your fellow director or business partner died or become seriously ill. Is the business able to afford to purchase their shares or part of the business?
At Birkett Long IFA, our independent financial planning managers understand the severe impact the loss of a director, partner or key person in your business could have and that the business could suffer badly, with sales and profits falling and increased workloads for the remaining staff. In addition to ensure funds are available using life assurance to buy the shares or part of the business. Getting this protection in place can be vital.
Key person and share protection is a life assurance, or life assurance and critical illness policies which are taken out to cover the life of a key person within your business and for share protection, ensuring that funds are available to purchase shares or part of the business.
Some examples of where taking out keyman protection might be an important consideration:
- What options are available when a key person is no longer available to work in the business?
- I need to be able to release funds to either pay a key person’s wage when they are not working in the business, or to supplement sick pay?
- I need funds to hire a replacement employee?
- What happens if I can’t afford to buy my fellow share holders shares on their death?
For assistance or advice on setting up keyman protection or share protection for your business, please call Mike Greely on 01206 217324 for a consultation.
- Nicola Ward
- Associate and Head of Birkett Long IFA LLP
Birkett Long IFA often works with Birkett Long legal in helping clients via their business arrangements and dealing with what would happen on death or diagnosis of a serious illness, ensuring that the appropriate shareholder or partnership agreements are in place and that appropriate life assurance arrangements are made.
What Our Client Say
The service from this team was excellent! Everything went smoothly, but most importantly we felt looked after in a very personal way. I was particularly impressed with the financial advisory service from Nicola, who was meticulous in her attention to detail, and made me feel that the solutions being offered really were around our specific needs. Everyone that we had contact with was able to give superb customer care, so you really should feel proud!