Protection is a fundamental building block for successful financial planning.
Why Do We Need Protection Policies
Protection planning, by way of insurance and assurance policies, can be used to protect you and your dependants against the financial disruption caused by your critical illness or sudden death.
As generating income is typically the building block to wealth, unforeseen ill health or premature death cuts this ability off. Your dependants may also struggle to cover financial liabilities such as mortgages in the event of your death, causing additional hardship and worry. To protect your dependants, a robust protection strategy should be in place.
There are several ways to protect yourself and your family including life cover, critical illness covers and income protection. All policies are underwritten by an insurance company before they agree to insure you. The younger and healthier you are when you start the process the cheaper policies tend to be.
There are many types of protection policy, all with different features and benefits. The aim of good planning is to ensure that the policy coverage matches the risk.
Shareholder Protection
This is the biggest financial decision you are likely to make
Businesses, like individuals, often need protection against the impact that the death of one of the shareholder/directors or partners might have on the financial viability of a business. If a director has ill health, or dies unexpectedly, it can have a significant impact on both the business and their family. Many small companies choose to include provisions within shareholder agreements or articles of association that, on the death of any one of the principals, the others will have the right to buy them out – usually at a pre-determined price, or on an agreed basis.
Shareholder protection allows directors to protect the value of their shares within the business to the benefit of the business and their family members. If the worst was to happen, an amount of money to the value of the Directors share would be paid out. This would allow the remaining Directors to buy the shares and fair value could be paid to the estate and beneficiaries.
We can also help with Key Man insurance to protect any other key employees whose death or long term absence would greatly affect the ability of the business to function.
Our initial no-obligation meeting is free of charge and allows us to look at your financial profile to ensure a strong ongoing relationship can be built.
8 Corunna Court, Corunna Road, Warwick, CV34 5HQ
01926 498808 | enquiries@davidsonpertfa.co.uk