When you organise cover with our team you will get the following benefits:
Compare providers
Our expert advisors can help you find the best policy from many large providers such as Legal & General, Aviva, Vitality and Scottish Widows. We also have access to solutions from various smaller specialist providers.
No fee to advise & arrange
We don't charge to discuss your requirements; there are no fees for us to research and explain your cover options, we don't even charge to arrange the cover, organise a trust and even write your Will at the same time - no fees whatsoever!
Will Writing Services are referred to our Sister Firm. Neither Dunham McCarthy Financial Services Ltd or PRIMIS are responsible for the service received. These services are not regulated by the Financial Conduct Authority they are instead regulated by the Institute of Professional Willwriters and have alternate consumer protection.
Explain products & options
Navigate through business protection options, including Relevant Life Cover, Key Person Protection, Shareholder Protection, Business Loan Protection, Executive Income Protection, and more. Let us decode each product, guiding you to the right cover for you and your business.
Bespoke recommendation
When we make a recommendation we take into account your health, family history and lifestyle, this means that when we give you a price, it is less likely to be adjusted following the underwriting process.
Review existing policies
As part of the advice process we always take a look at any existing policies that you have in place and review them to ensure they are the most comprehensive and competitive available.
Free last will & testament
Secure your business protection policy through Dunham McCarthy, and receive a complimentary legally binding last will and testament from Mylastwill.co.uk. Essential for business owners, ensuring your business goes to the right hands in case of the worst.
Policies written into trust
To minimise delays and reduce Inheritance Taxes, we can write you policy into a discretionary trust, again no charge!
What is Business Protection?
Business protection involves securing insurance policies tailored for businesses, ensuring financial stability in unforeseen circumstances. These policies provide a lump sum payout or a regular monthly income upon the occurrence of events such as key person loss or business partner's death or illness.
Our business protection products are crafted to be comprehensive and adaptable. Whether safeguarding key persons, partnerships, or employees, our offerings are designed to ensure the resilience of small and medium-sized businesses, freeing them from potential debts and providing long-term financial security in the absence of key individuals.
What are the Types of Business Protection?
1)
Relevant Life Insurance
Relevant Life Insurance is a tax-efficient solution allowing businesses to provide a death-in-service benefit for company directors and their employees.
2)
Key Person Protection
Life insurance and/or critical illness cover assist you and your business in covering expenses, such as reduced profits or funding replacement staff, following the loss of a key person such as a director, manager or other key staff.
3)
Share Protection
Share Protection enables business owners to buy out shares in the event of a partner or director's death or critical illness, ensuring a smooth transition and financial stability for the business.
3)
Business Loan Protection
Provides crucial support by assisting in the settlement of outstanding loans or debts after the loss of a guarantor or key individual, helping the business maintain stability in the face of adversity.
3)
Executive Income Protection
Can help protect small businesses against the financial impact of an employee’s incapacity on the business, ensuring stability during challenging times.
3)
Key Person Income Protection
Offers businesses a monthly benefit in the event that a key employee is unable to work due to illness or injury, allowing businesses to navigate uncertainties with confidence.
Why is Business Protection Important?
When asked, many business owners agree that the loss of a key person can have dire consequences for their business. Yet more than 50% didn’t have any cover in place, and what’s really worrying, 52% said they would cease trading within one year.
Business protection serves as a crucial lifeline for businesses in the event of the death, terminal illness, or diagnosis of a specified critical illness of an owner or another individual pivotal to the business.
The policy's proceeds play a vital role in facilitating the replacement of key individuals, safeguarding against debt, and facilitating the purchase of shares from the estate of the deceased partner or shareholder. This coverage often proves to be the determining factor in whether a business can weather the storm or faces the risk of closure.
a)
Business protection can often offer tax-efficient solutions, providing financial benefits for both the business and its key individuals. This includes potential tax relief on premiums, making it a strategic and cost-effective choice.
b)
In the unfortunate event of a partner's death or critical illness, business protection ensures a smooth transition by facilitating the purchase of their share. This prevents potential disputes and maintains the stability of the business.
c)
Business protection acts as a safety net, ensuring that outstanding loans are repaid if a key individual is no longer able to contribute due to death or critical illness. This protects the financial health of the business and helps av0oid potential debt-related challenges.
d)
In the absence of a key person, business protection provides financial support to cover recruitment and training costs for a suitable replacement. This ensures continuity in operations and minimises disruptions to the business.
Contrary to common perception, setting up business protection shares similarities with other types of protection. The primary distinction lies in the generally higher sums assured associated with business protection.
How Much Does Business Protection Cost?
The cost you’ll pay depends largely on the amount of cover you need. This will vary depending on the kind of protection you opt for. However, there are many influencing factors that can affect the amount of your monthly premiums:
a)
Age
Generally the younger you are, the healthier you are– therefore, you are considered a much lower risk and this is reflected in the amount of cover required and the premiums paid. By contrast, a person in their 50’s, with a considerable sized business and possibly some health issues might find themselves paying more.
b)
Health and Lifestyle
This naturally plays a huge part in the cost of the premiums because of possible risk of illness and death. For example, an ongoing illness such as heart or blood pressure issues will likely have an effect; so too will things like smoking or drinking. High risk hobbies can also make a difference.
c)
Family History
Your family’s medical history is reviewed by insurance providers because it can be an indicator of your future health. If for example your parents or siblings have struggled with a particular illness, your premiums may be increased.
d)
Business Size
The cost of business protection is significantly influenced by the size of the business, specifically the amount of coverage required. Factors such as the level of debt, the overall value of the business, or the income of the individual being covered contribute to determining the necessary coverage.
e)
Provider
Like any product or service, it depends whom you choose to place your business with. It pays to shop around, do some research and to take some professional advice. We simplify the process by conducting the necessary shopping around on your behalf, ensuring you receive the best-fit solution for your business needs.
Does Life Insurance Always Pay Out?
Actually the majority of life insurance claims are successful and pay out, Aviva and Legal & General for example pay our 99.3% and 96.7% of life claims respectively. Inevitably, there will always be a small number of cases where claims are turned down. This can be for a variety of reasons:
* Aviva claims statistics 2023, , Legal & General claims statistics 2022
a)
Non-Disclosure
Where details of an illness or condition were withheld at the time of taking out the policy. This is most often a pre-existing medical illness that policy holders didn’t disclose because of the effect it would have on the premium.
b)
Missed premiums
If you miss a payment, sometimes by accident (example changing banks or forgetting to transfer funds from one account to another) or because you are going through difficult financial times. Either way, it is important to talk to your provider right away since missing a payment might result in the policy being cancelled. Most providers will offer a way to assist you.
c)
Unsatisfied Waiting Period
This is normally in relation to ‘Over 50’s Policy’s.’ There is often a 12 to 24 month period where claims can’t be made due to death through natural causes; although all the premiums paid will be refunded.
d)
Uncovered cause of death
If the causes and reasons surrounding your death are not known or understood and are awaiting further investigation. If someone is missing, its usual that they can’t be declared dead until seven years have passed.
e)
Exclusions
These will vary from policy to provider. Certain medical conditions, travel to certain countries (war zones for example) and certain sports. Its important that you disclose everything about your lifestyle, hobbies and medical conditions so that a policy and provider can be found that meets your requirements.
Why Should my Business Protection be in a Trust?
A trust is a legal arrangement that allows the owner of the insurance policy (the settlor) to gift the proceeds paid under claim to someone else (the beneficiaries). It’s helpful with Business Protection as it helps keep businesses running normally, without being impacted by changes in power or finances.
Putting a business protection policy into a trust offers several key advantages. Firstly, it allows the settlor to dictate who benefits and how, ensuring that the intended individuals, such as shareholders or partners, receive their fair share.
Additionally, this structure facilitates the efficient buyout of the settlor's business share by distributing benefits to surviving stakeholders, preventing unwanted third-party involvement.
Writing the policy in trust also significantly speeds up the payment of death benefits, as trustees can directly claim and distribute funds without the delays associated with probate. Moreover, placing the policy in trust can usually reduce or mitigate Inheritance Tax, exempting the benefits from the settlor's estate.
Where Should I Arrange my Business Protection?
Given the importance of such a requirement and often faced with a raft of small print and possible exclusion clauses, we would always suggest that you seek some advice from a specialist adviser to ensure you get the life cover that’s ideally suited to your requirements.
We have a team of qualified professionals ready to assist you in securing the right cover for both you and your business. Call us today at 01785 336222 and let us guide you towards comprehensive protection.
