Availability of information
Life and Disability cover
for business
This type of solution is broken into three main parts to reduce the impact of death or disablement on your business.
Protecting your shares
Protection for the ownership of your business means you can rest assured that if a shareholder in the company becomes seriously ill, can no longer work, or dies, the funds are available for an easy transfer of shares. This is important to -
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Pay the outgoing shareholder (or their family) what they are entitled to quickly
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Retain control of the business by the remaining shareholders
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Remove debts/guarantees on the exiting shareholder or their property
Debt protection
If there is debt within the business, would this be able to continue to be serviced if a key person or a guarantor was unable to work in the business?
If not, the debt can be covered with insurance so that in the case of death or disablement, the debt can be paid. This allows for the business to continue without the burden of debt repayment, and also ensures that loans won't be recalled, as can be the case when there is an adverse event in the business.
Covering key people
In order to keep your business running, you need to be there. If faced with injury or illness you need to make sure that your business can continue to run by covering your income, the cost of a replacement, reducing debt, or bumping up cashflow. This provides some comfort that there is still a healthy, profitable business to come back to once you or your key people are back to fighting fit.
Contact Dan on 021 231 1046 or dan@planandprotect.co.nz