Key Person Insurance

You may rely on a key employee who is vital to the profitability or even the existence of the business.  You can protect your business from the disruption which might follow the death of such a colleague by taking out a life insurance policy on his or her life.  The policy can be used to cover costs of finding and training a successor. There may be liability to corporation tax in respect of some – or all – of the amount paid out under the policy.

Partnerships

The business could be at risk if one of the partners dies. Life insurance can help the other partners to buy the deceased partner’s share of the business from the estate to which it would otherwise automatically pass.

Directors’ Share Protection

Life insurance can protect you and the other surviving directors from any withdrawal of capital following the death of a director. The payment from a life insurance policy may help with the purchase of the deceased director’s share of the business.