Frequently Asked Questions

Your business may be prospering today but life is full of unforeseen events.

How would your business cope if you, a shareholder or key member of staff was diagnosed with a critical illness or unexpectedly died?

Business Protection provides liquidity in a time of crisis enabling you to minimize disruption ensuring business continuity and sustainability.

Start-ups rely on a small team of Key Persons.

Death or incapacitation of a key individual could mean the end of business before it realises its potential.

Business Protection Insurance could pay off start-ups costs, and or cover the cost of hiring a replacement.

How much investment and income would you lose if your business collapsed following loss of a Key Person?

Protecting your hard work and achievements could be less than 1% of your company turnover.

No-one is immortal and insusceptible to Illness. Sadly, people of all ages are affected when least expected.

The younger someone takes out a policy the cheaper it is. Fatgreen recommend arranging cover based on what you need to protect, not age or health.

Few people relish downsizing, especially if they have children.

Selling a home and downsizing is not easy, especially if you are incapacitated following illness.

Critical Illness and or Income Protection provide access to capital helping maintain your standard of living.

Statutory sick pay is £99.35 per week and Employment Support Allowances are circa £70 – £100 per week.

Most families would struggle to survive financially on Long-Term Sickness benefits.

Critical Illness and Income Protection can provide a one of payment or regular monthly income helping maintain your standard of living.

Both have their merits.

Critical Illness provides a one-off cash lump sum which can help modify a home to accommodate a family member suffering from a long-term Illness.

Income Protection provides a regular monthly income until the incapacitated can return to work or retires.

Successful businesses usually require successful teams which include Key People essential to growth and stability.

A Key Person is not just the boss but individuals who create a successful team.

Key Man insurance can help protect your business from financial instability following the loss a key member of your team.

Loss of a Key Person can have a dramatic impact on a business finances.

Colleagues, clients, suppliers and financiers need reassuring there is a contingency plan protecting the business from disruption.

Key Person Protection helps by providing cash which stabilises business finances and funding the cost of a replacement.

Both have their merits.

Shareholder agreements clarify how to transfer shares from a deceased shareholder, but not a “right to buy”.

Without a “right to buy” the deceased shares can still be sold to the highest bidder.

We recommend including a Cross-Option agreement with “right to buy” into the Shareholder agreement.

Both have their merits.

You may want to buy shares from a family member but how would you finance the buy-back?

Shareholder protection can be structured to provide liquidity to buy-back shares providing family members with a lump sum of cash.

Depending on the value of your business, shareholders stock could easily be worth six or seven figures. Few SME’s have enough cash reserves available to buy-back stock. If they have enough cash that capital maybe required to manage cash-flow.

Rather than borrow money to buy-back stock, Shareholder protection provides access to capital following death or incapacity of a shareholder. The capital can be used to buy-back a deceased shareholders stock.

Business Loans typically require a Director Personal Guarantee and or collateral such as a family home.

Following death or incapacitation lenders require debts to be paid off which may require sale of a family home.

Business Loan protection provides access to capital which can be used to pay off debts whilst protecting your family and their lifestyle.

Life Insurance premiums are typically paid monthly via individuals taxed income.

Relevant Life protection provides Life Insurance for individuals paid for by a company.

Relevant Life Protection is not deemed a benefit in kind therefore premiums can be offset as an expense reducing corporation.

Enhanced employee benefits make existing and potential future staff feel valued and create a positive impression of an employer.

Positive impressions help attract better quality staff and staff who feel valued are often more productive and loyal which is reflected in lower attrition levels.

Death in service schemes aim to provide a solution catering for all members of staff whilst spreading the costs evenly across employees.

Staff typically have specific individual needs unaddressed by a “one size fits all” death in service scheme.

Relevant Life Policies are tailored to individual specific needs and require much less management administration.

Income Protection or Critical Illness can be added to your Personal, Family or Business Protection Policy or can be acquired as individual stand alone cover.