If a key person in your business was to pass away or be unable to work due to injury or illness, what funds would the business require to mitigate the impact? A key person in your business could be someone who:
The insurance proceeds are paid directly into your business, and could be used to hire a replacement, meet ongoing loan repayments, or to meet ongoing expenses if cash flow is impacted.
Going to a bank and asking for a loan right at the very moment a key person is lost can be extremely daunting, and very challenging.
We can provide advice to help protect your business from the loss of key personnel.
When two or more people own a business and one of them passes away or becomes disabled, it can create conflict between other owners who have lost the input of a valued owner, and the family of the person who wish to draw on the asset.
A buy sell agreement is one way of securing the value of your share in your business to flow to your family in the event of your death or permanent disablement.
We can provide advice to ensure that in such an event, the outcomes all parties would want can be achieved.
A lending covenant is a special condition that is included in a lending agreement with a bank.
When you borrow for your business, lenders can require you to hold specific life insurances to clear debt in the event of your death and
total disability. We can provide advice to set up policies to meet these requirements.
As the business owner, you are generally responsible for all or most of the company revenue, and if something happened to you, business income stops. This is a policy aimed at smaller business, generally with only a few full time staff.
However, you might have an office lease commitment, general business administration expenses being paid every month (advertising, telephone contracts); vehicle or equipment leases or wages.
Business expenses policies provides a monthly benefit, paid directly into your business, to help cover those ongoing business expense that
have to be paid no matter what.