Life Insurance & Other Insurances

Life Insurance incorporated in PARTNERSHIP INSURANCE

Business partnerships should be viewed very carefully when considering the real occurrences that are likely to eventuate should one of the partners die, or should one of the partners be diagnosed with a trauma condition and NOT die. (SeeTrauma / Diagnosis Insurance)

In the event of death, the remaining partner finds him/herself in business with the spouse or family, or indeed ex-family, of the deceased. Whether this is amicable or hostile, the issue around buy out must be considered. The cost of the buy out of the deceased persons family, has to be funded. Lack of funds at buy out time can turn an amicable relationship into a hostile one, within a very short space of time. Lack of funds can also cause financial devastation to the deceased persons family. Life isurances can really help in this situation.

Similarly, in the event that one of the business partners experiences the diagnosis of a trauma condition and NOT die, (See Trauma / Diagnosis Insurance), funding for buy out again needs to be addressed. As in death, lack of funding available to ensure timely buy out procedures, can cause a rapid deterioration in relationships, financial hardship for both the other business partner and the business partner who has been diagnosed. Not to mention the stress placed upon the diagnosed partner, and the respective family.

This type of insurance should be noted within a relevant Business Partnership Agreement, Estate Plan or at the very least, Minuted in the Company Minutes with annual reviews reflecting the ongoing business worth and subsequent life insurance premiums funding required, and that then reflected in the Annual Minutes of the Company. This ensures the use and reason for this cover is clear, for family and Taxation purposes.

To submit an online quote request form for life insurances and income protection insurance and partnership insurance, go to the life insurance request quotation page.

Life Insurance incorporated in KEY PERSON INSURANCE

If a major income producer, or major production manager, or any employee that is responsible for a major component of a Company’s success, is unable to continue to perform his / her duties because of death, this can be disastrous for the cash flow, productivity and ongoing profit and success of the business or company.

“Key Person Insurance” incorporating a life insurance policy, can be taken out on that key person, which provides a lump sum payment of the chosen sum insured, upon the death of the Key Person.

Similarly, the same situation occurs in the event that the Key Person is diagnosed with a trauma medical condition, but DOES NOT die. In such a situation, the Key Person would not be able to perform their normal duties, certainly not for some considerable time, if ever again.

Key Person Insurance provides funding for the business to continue by employing a capable manager, or replacement, to keep the business running while the key person recuperates. Or in the event of death, keeps the business from running down to a fire sale price.

Note: There can be more than one “Key” person in a company structure.

To determine the likely life insurance premiums for your situation, submit an online quote request form, go to the life insurance request quotation page.

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