So, you’ve insured your business premises, your machinery, and your fleet, maybe even yourself, but have you forgotten about your most valuable assets?
The death or serious illness of a key employee can have a big impact on your business.
It may be that you have considered this problem and have even taken out life assurance on key staff. However as medical science advances and the survival rates from serious illnesses increase then what would have been a death claim payout 20 years ago may well not be today. What if the illness is so serious that either the employee can not work again or even if they can, they have a change of life plan and decide to leave the business?
Having critical illness cover in place means that the insurance would pay out if the key employee had a serious illness such as heart attack, cancer, stroke etc- even though death would never be an outcome.
Shareholders – keep control
We all like to think that one day we will sell our business and enjoy the fruits of our labour. However, what if the unthinkable happens and a shareholder dies or develops a serious illness? Many small businesses have not considered this scenario and have no planning in place.
This has very dangerous consequences;
- No means within the business of passing fair value to spouse or partner
- Possible interference of spouse or partner in day to day business decisions – the new shareholder!
- Spouse or partner chooses to sell shares to third party
- Devaluation of the business
“I finally know what distinguishes man from other beasts: financial worries.”