Key Person Cover and Business Loan Cover
Article published on 1st July 2015
Business and pleasure are said to be a bad mix if one aims for success. Business and insurance, on the other hand, is seen by many as a recipe for assuring assets and for ensuring a secure future.
That's because we live in a world where none of us has the guarantee of tomorrow. For this reason, one should be prepared both for business and for personal reasons by protecting themselves with Life Insurance.
One such kind of insurance is Key Person Insurance. This one works precisely the same way as an individual life insurance policy. The only difference is that when the insured dies, the proceeds are paid out to the company instead of the family.
This then allows the business to use the life insurance proceeds to source and employ a replacement for the deceased, ensuring business continuity and limiting any potential damage to the business or its operations.
The money can also be used as the business sees fit, such as for buying or selling shares and supplementing the income for the insured's family. In this regard, the owner of the business or head of the company is not necessarily the only one who is right for this kind of insurance.
For example, if you have very important employees that are not only highly valuable for the company but also hard to replace, you should consider covering Key Employees with this type of insurance.
What about a Business Loan Cover?
As a business owner, working hard is something you must be very familiar with.
However, sometimes, life has a way of altering one's fate and so you should ask yourself what would happen to your legacy after you are gone? Would your heirs need to sell assets in order to pay liabilities and taxes? Would there be any outstanding business loans or debts to be paid?
All of these questions can be swiftly dealt with thanks to this Business Loan Cover which is in many ways the key to ensuring that your business partners will be able to keep the boat afloat, should anything happen to you.
All things considered, taking out a key person policy or business loan cover is a very wise decision if you want to remove those worries and provide protection not just for your business but also for the lives of your family and employees.
Thanks to these types of insurance, you won’t have to worry about the uncomfortable "what if" questions.
Key Person Cover, or any form of business life insurance or business loan protection can be a difficult subject to get your head around. As such, it is important to seek professional advice to make sure that the policy you take out is the best available for you and your business. It must serve it's objectives properly to ensure maximum protection, if the worst should happen.
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