Keyman Insurance - have you heard of it? It provides insurance for the ( remortgages ) business in case a key person is unable to contribute for health reasons or death. Small businesses take note - this article applies to you.
Keyman Insurance - small businesses shouldn't be without it
Author: Anna Richardson
"My name's Richard, I am 45 years old and I am a co-director of a
- Life Insurance. Medical history increases the cost for 66% of applicants
- Life companies keep their initial quoted prices low by being choosey on who they accept on standard terms. Having made a formal application, two thirds of applicants will face a loaded premium. This article explains why and what the shopper can do about it, choose an online broker!
- Tips for Choosing a Life Insurance Company
- This article argues that you need to consider the merits of the life insurance company providing the policy, as well as the policy itself.
- Life Insurance and the Law. A layman's introduction.
- This article is an introduction to the regulatory and legal aspects of buying Life Insurance which the layman should find interesting and useful. Special reference is made to buying life insurance on the Internet.
- Calling all smokers. A dream ticket for two to Paradise Island for all of you!
- When you take into account the extra costs of your life insurances, smoking costs more than you think. This article spells out the costs and what the money could achieve if invested. or what it could buy!
- Group Critical Illness Insurance - The cheaper alternative to Keyman Insurance.
- If your business has found Keyman Insurance to be too expensive, take a look at Group Critical Illness Insurance. At around half the price it's a snip.
- Critical Illness Insurance. Concerns for Cautious Customers
- The selling of Critical Illness Cover has been under review by the FSA. They are addressing some concerns in their report in an effort to protect the customer.
Last week, I had to travel down to Surrey to meet some new suppliers, and the journey was terrible. A cold and rainy March day, the motorway was extremely busy and there were a lot of lorries on the road. Sometimes I just couldn't see due to the spray and driving rain. As the M25 approached the traffic on the M1 slowed down and then stopped. Good old Radio 2 informed me that there was a major accident ahead and there would be long delays. Sure enough, my journey took at least an hour extra.
"The accident had been pushed onto the hard shoulder by the time I approached. Two cars and a lorry had a bad smash and I doubt either of the car drivers survived. If I had left 10 minutes earlier, that could have been me in that crash. It was a ( home insurance ) sobering thought. At least I have life insurance and a will, so I know that my family would be able to financially cope without me.
"Then I thought about my other major responsibility, my business. We are covered in every way - we've got public liability and professional indemnity insurance, the stock ( best mortgages ) and vehicles are all covered, we've got an overdraft to help us out when needed. We've even got legal protection insurance. But what would happen to the business without my contribution?
"I take care of many aspects of the business, it's a small company so we all do more than one job. I make all the relationships with suppliers and clients and keep them happy, I also take care of everything on the financial side. I know that business like the back of my hand. Without me and my knowledge, I think the others would find it very difficult. ( cheap car insurance ) If Sally, our best saleswoman, had an accident, we would find it very difficult without her. Similarly, if my co-director died or was too ill to work anymore, how would we manage without him?
"It wouldn't take long for the Bank to call and ask what would be happening with his 50% share of the company. I'd be left in a position where I'd have to buy the shares if I wanted to keep the company as my own. I'd also need to bring in another employee at director level to keep the business going, and build it up again. At that level it would be very costly and very time consuming, getting the right person to fit in to a small business can be difficult.
"I started to get really worried - what provisions had we made to ensure that the business would survive if we lost one of your key members of staff?"
Click here for page 2