Financial Protection

When an individual leaves the security of permanent employment to run a business, clearly there are various matters on their ‘to do’ list that should be addressed as a priority. We believe that in amongst ‘establish trading method’ or ‘appoint an accountant’ should be ‘replace lost employee benefits’. This is a crucial part of a client’s financial planning, as failure to address this can result in serious consequences.

A number of key questions should be asked when looking at this: -

• How will I meet my monthly commitments if I am unable to work due to a serious accident or long term ill health? Can I continue to pay the mortgage? How will the prospects for my business be effected?
• How will my long-term financial objectives be effected if I am unable to work for a significant period of time?
• How will my wife/partner and/or children cope if I were to die?

Financial security and peace of mind can be gained from constructing a financial protection portfolio that addresses these issues. In this regard, there are three types of insurance that should be given due consideration.

Income Protection

Designed to typically replace up to 50% of your earnings in case of you being unable to carry out your occupation, due to long-term ill health or disability. Particularly important is the insurers' definition of earnings. We have access to specialist insurers, which are able to take not only salary or self employed income into account but also Company dividends into consideration, including partner's dividends.

Life Assurance

Replacement of lost death in service benefits may be especially crucial to an individual who was previously permanently employed. However, there are various structures for life assurance policies, which may be considered in order to address different needs.

Critical Illness

Designed to primarily pay a lump sum in the event of you contracting any one of a whole range of critical illnesses such as cancer, heart attack, stroke, paralysis, blindness, and brain tumour. A good policy would cover at least 25 to 30 serious illnesses.