Protection Planning

Protecting your business financially against the premature death of a key individual is an area that is often overlooked. However, take a moment to consider the potential impact that this would have on your business in terms of disruption, lost profits and the cost of recruiting and training a replacement.

The death of a partner or shareholder in the business has even greater potential financial implications, as control of part of your business could pass to the deceased’s beneficiaries who may have neither the expertise nor the inclination to help you continue to run your business successfully. Would your business have sufficient funds available to purchase back that control?

One way of ensuring that it does is to insure shareholders, partners or other key employees to provide the business with a lump sum should they die or suffer from a serious illness that prevents them from working. This type of cover is often required by a lender as a condition of making a loan to your business, perhaps to allow a management buyout?

But how much cover do you need and how much will it cost? At Midland Financial Solutions Ltd, we have many years of experience working closely with businesses to establish how much cover is needed and as we are completely independent, we can ensure that the most cost effective cover is obtained for you.

However, there are other considerations such as who should pay the premiums, has your business the correct legal documents in place to ensure the cover is fully effective and should you consider the use of Trusts? We will guide you through this potential minefield to ensure the most suitable course of action is taken and we always work closely with your legal advisers. We can also review any existing arrangements you have in place to ensure that they remain suitable (and cost effective!) in meeting your objectives.



© 2011 Midland Financial Solutions Ltd



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