Personal Financial Protection
Safeguarding Your Enterprise
Business protection insurance helps business owners prepare for unexpected events by providing coverage that enables continued operations with minimal disruption following the loss of key personnel through death or illness.
These solutions offer multiple benefits: ensuring business continuity, funding replacement of essential employees, delivering employee benefits, protecting against corporate debt, maintaining ownership control, and ensuring deceased owners’ estates receive appropriate compensation for business shares.
While business continuity and succession planning principles apply broadly, each business has unique protection requirements. Our Financial Protection team can provide expert guidance on selecting appropriate coverage to minimize impact when challenges arise.
Relevant Life Cover
This employer-provided benefit offers tax-efficient individual life insurance for employees (including employed directors). It pays a lump sum through a discretionary trust to the employee’s family upon death.
Relevant Life Cover helps:
- Attract and retain talented staff through enhanced benefits packages
- Provide tax-efficient coverage
- Allow directors to arrange family protection funded by the company
Typically extending to the insured person’s expected retirement age, this coverage can be arranged for various amounts (subject to maximum multiples of annual remuneration). Its cost-effectiveness stems from premiums generally not being treated as P11D benefits.
Note: This information reflects our current understanding of legislation, taxation law, and HMRC practices, which may change. Relevant life plans should not be used for business benefit.
Executive Income Protection
This benefit allows employers to provide tax-efficient income protection for employees (including employed directors), helping attract and retain talent while providing peace of mind to both employer and employees.
Executive Income Protection pays the company a monthly benefit when an employee cannot work due to illness or injury. These payments can fund ongoing sick pay through PAYE, supporting employees during recovery. It also offers employed directors a tax-efficient way to protect personal income with company-funded coverage.
Beyond protecting pre-retirement income during illness, this protection can cover pension and National Insurance contributions—crucial support if an employee faces long-term inability to work, as they would likely struggle to build retirement income independently.
This coverage can be cost-effective because premiums generally aren’t treated as P11D benefits. Note that this information reflects current understanding of legislation, taxation, and HMRC practices, which may change. These plans should not be used for business benefit.
Business Loan Protection
Many businesses borrow for investment or cash flow management, but could your company maintain repayments if a key person died or became critically ill? Financial institutions often base lending decisions on specific individuals remaining with the business and might demand immediate repayment if those key people are lost.
A key employee directly impacts business profitability—perhaps through valuable contacts, sales performance, leadership, product development, or other significant contributions.
Business Loan Protection helps your company repay outstanding overdrafts, loans, or commercial mortgages if a key person dies or develops a critical illness. Coverage should align with your business’s borrowed amounts to ensure adequate protection for debt repayment.
Failure to repay business loans can have serious consequences. This protection provides peace of mind for personnel and shareholders while allowing more confident financial planning.