If your share of the business is your most valuable asset, protecting it for the benefit of your family is not only highly recommended: it's essential. Business protection insurance can not only make life easier and more straightforward for your family should the worst happen, but it also protects your business over the long term.
What is Ownership Protection for?
It gives everyone involved in the ownership of the business a greater degree of certainty ensuring that the deceased's family have timely funds to begin rebuilding their lives and the surviving business owners maintain full control of their business.
It can completely remove the period of uncertainty, following a business owner's death or diagnosis of a critical illness, regarding the ownership of the business and the potential need to raise bank finance.
What does Ownership Protection cover?
The Ownership Protection solutions we put together can include cover in the form of life insurance policies or life or earlier critical illness policies.
After listening to your concerns and establishing a realistic budget, we can help you determine which type of cover is best suited to your business's needs.
How does Ownership Protection work?
Ownership Protection typically uses a life insurance policy to provide the lump sum capital for the surviving business owners to buy the deceased's share of the business from their family. Alternatively, it can utilise a Life or Earlier Critical Illness policy to fund the necessary share purchase from an owner who has been diagnosed as critically ill.
BPS Business will guide each business owner in taking out an insurance policy to the value of their current share in the business. We'll then advise and assist in how you can set up a specific business trust plus an appropriate Cross Option Agreement.
Should one of the business o wners die within the term of the plan, the policy will pay out into the business trust for the benefit of the surviving business owners.
In what can be incredibly difficult circumstances, shortly after a death, the Cross Option Agreement can be activated to make sure surviving owners retain full control and ownership of the business and the deceased's family have a cash lump sum to offer financial security when they need it most.
Do I need Ownership Protection?
If your business is critical to your income, your retirement and your family's lifestyle, it makes sense to protect it. Ownership Protection also offers peace of mind for you, your business partners and the long term future of your business, while taking care of your family financially too.
Not protecting your ownership could mean that the business won't have the funds to buy your family out, could mean that your share passes into new hands or possibly threaten the stability of your business in the marketplace.
Conversely, if one of your business partners dies, would that leave you at the mercy of the bank, the deceased's family, legal representatives or a third party purchaser?
We understand how hard our clients work to build their businesses, making many sacrifices along the way to create regular income, build an asset and provide for their family. In that context, we strongly believe that not having Ownership Protection is a false economy.
The real question is: can you afford not to have it?
What are my options?
Ask Us - we make getting Ownership Protection Insurance quick and easy because we ask the right questions, research your options and present a suitable, cost-effective solution.
You can be confident in advice provided by an experienced protection insurance advisor who draws on his Chartered Accountancy background to specialise in helping business owners address these specific issues.
We do not charge fees for our advice and policies can start from under £10 per month.
Call us on 028 3833 8000 or by sending an email for a no obligation chat about what is right for your personal and business circumstances.