by: Michael Challiner
Last month I had to drive down to London. I don't like driving at the best of times but the rain, spray and heavy traffic on the M1 made conditions difficult. Radio 2 kept me company and the heater kept me warm. Then I hit that queue - six miles solid and I was soon an hour behind schedule.
They were still clearing up the accident when I got there. It was nasty. A lorry and what was left of two cars. Made me think, after all that could have been me. Yep, my life insurance is up to date and my Will was renewed only last month. The family would be well cared for and the mortgage repaid. Had I missed anything?
The business. What would happen to that? We have two directors, 7 employees, an overdraft and lots of insurance. Public Liability, professional indemnity, vehicles and stock are all insured. We even have legal protection insurance. Had I missed anything? I got to thinking.
Thank goodness it wasn't George in that accident. A great guy and he's been with us five years. He's our top salesman. There again what if it had been my co-director who also owns 50% of the business? What would be the repercussions on the business?
Sales down, profits down, bank phoning all too politely to ask about the Directors guarantee on the overdraft. Then I'd have to try and buy his shares. I wouldn't want someone else to get hold of those. At some stage I'd have to recruit someone of his calibre to continue the company going forward - that wouldn't be easy! And recruiting top people doesn't come cheap. That's more time and more money. The personal problems ?? the repercussions ??.. the extra work ??? the extra stress ??..
Oh heck, I don't want to think about it all. Quickly, switch over to Radio 1 .
Does all this ring alarm bells with you? 95.2% of UK businesses employ less than 10 people and these are precisely the organisations most at risk from the impact of severe illness or death of a key person. The risks of a key person being stuck down with a long term illness or death are real. 1 in 5 men suffer a critical illness before their normal retirement age. Then there's the M1. The fact that it hasn't happened so far might just mean your business has just been lucky.
Now to those actuarial boffins in insurance companies, risk and luck are flip sides of the same coin. And they can provide insurance cover for most risks. After all they too want to increase sales. But they're scratching their heads about Keyman Insurance. Most of Britain's 4.1million small businesses should have it but few do. What can it do? It can be structured to:
Provide an income stream to the company whilst the key person is incapacitated (compensation for the lost contribution from the Keyman)
Provide a lump sum to the business in the event of death (pay off the overdraft or simply bolster cash flow?)
Provide money for remaining shareholders to buy the shares from the original shareholder or their estate
You'll need to talk to a Financial Adviser about these issues but they are all insurable. Can your business afford to take a risk it doesn't need to?
Memo to myself ? get Keyman Insurance!
About The Author
Michael Challiner is the chief editor of Express Life Insurance offer life insurance and mortgage insurance. Additional reading - Smokers Life Insurance - http://www.express-life-insurance.co.uk/will-i-get-charged-more-as-a-smoker.htm Additional Reading - Does my life insurance policy work abroad ? - http://www.express-life-insurance.co.uk/does-a-uk-life-insurance-policy-work-abroad.htm
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The Life Insurance Policy and What You Need to Know Before You Buy
The Life Insurance Policy and What You Need to Know Before You Buy
by: Don Adams
Are you looking to buy a life insurance policy?
Well, be careful. Life insurance can be difficult to understand and it's easy to be conned into buying something under false pretenses.
Recently a prominent life insurance company together with several of its agents paid a huge fine because it permitted the sale of a life insurance policy disguised as a retirement plan.
There was little attention given to what a life insurance policy is truly designed to provide.
Life insurance is not an investment for your benefit.
It's guaranteed income tax-free cash paid to someone you designate in the event of your death.
If you deeply care for someone and want to protect them, then buying a life insurance policy makes sense.
As primary bread winner in your family, your lost income could jeopardize the ability of those you love to...
The Life Insurance Policy and What You Need to Know Before You Buy
Insurance > The Life Insurance Policy and What You Need to Know Before You Buy
The Four Chief Types of Life Insurance
The Four Chief Types of Life Insurance
by: Evan Davis
Life insurance, at its core, is a means to protect the financial security of one's survivors. It is generally thought of as a way to provide income replacement for a wage earner's survivors in the event of death.
Life insurance is purchased from an insurer by making regular payments of premiums during the life of the insured.
Upon the death of the insured, designated beneficiaries receive a financial benefit.
Although all life insurance policies maintain those consistent characteristics, there are different means to achieving the same end.
Four distinct types of life insurance have been developed and are in common usage.
*Term Life Insurance
Term life insurance is probably the most basic form of life insurance.
Term insurance is purchased for a specific period of time (the term).
The length of the term can vary considerably.
Insurance > The Four Chief Types of Life Insurance
The Ins And Outs Of No Load Life Insurance
The Ins And Outs Of No Load Life Insurance
by: Jon Butt
What is no load life insurance? No load insurance is fairly uncommon, but many consider it better than the average whole life insurance package. Life insurance no-load simply means that it is not commissioned-based.
The first year payments are much less compared to traditional life insurance packages. No load life insurance also has other notable features like zero cash surrender charges and earlier cash value accessibility. However, most life insurance companies still do not offer no load insurance. Still, if there is no load insurance available in your area, you should consider getting no load insurance instead.
How Does No Load Insurance Exactly Work?
No load insurance isn't exactly made to eliminate the need for life insurance agents or brokers. Instead, the fee structure of no load insurance has been changed. Life insurance advisors are paid by potential life insurance...
The Ins And Outs Of No Load Life Insurance
Insurance > The Ins And Outs Of No Load Life Insurance
The Ins And Outs Of No Load Life Insurance
The Ins And Outs Of No Load Life Insurance
by: Jon Butt
What is no load life insurance? No load insurance is fairly uncommon, but many consider it better than the average whole life insurance package. Life insurance no-load simply means that it is not commissioned-based.
The first year payments are much less compared to traditional life insurance packages. No load life insurance also has other notable features like zero cash surrender charges and earlier cash value accessibility. However, most life insurance companies still do not offer no load insurance. Still, if there is no load insurance available in your area, you should consider getting no load insurance instead.
How Does No Load Insurance Exactly Work?
No load insurance isn't exactly made to eliminate the need for life insurance agents or brokers. Instead, the fee structure of no load insurance has been changed. Life insurance advisors are paid by potential life insurance...
The Ins And Outs Of No Load Life Insurance
Insurance > The Ins And Outs Of No Load Life Insurance
How Do I Choose A Good Insurance Company For My Needs?
How Do I Choose A Good Insurance Company For My Needs?
by: Matt Clarkson
It?s easy to see which company is least expensive, but when you need them to cover a claim, what kind of job will they do? To put it another way, which is the most reliable insurance company?
Here?s some quick tips to help you choose the right insurance company for you.
- Visit your state's department of insurance and check consumer complaint ratios and basic rate comparison surveys.
- Get in touch with local body medical practitioners you trust and ask which insurance companies they recommend.
- Consider contacting an insurance agent for additional information about a particular insurance company.
- Check out the financial strength ratings for an insurance company by referring to the A.M. Best and Standard & Poor's ratings.
There?s so much to think about when looking for the right insurance company; we?ve already...
How Do I Choose A Good Insurance Company For My Needs?
Insurance > How Do I Choose A Good Insurance Company For My Needs?
Supplemental Health Insurance: Changing Workplace, Changing World
Supplemental Health Insurance: Changing Workplace, Changing World
by: Anna Dorbyk
Work-related stress is on the rise and according to Statistics Canada, the repercussions are numerous. Increasingly, individuals are finding that their job demands more of them- more hours, more flexibility, and more qualifications. The end result of such demands is more stress, and people are having a hard time coping with it.
Many individuals respond to workplace stress by working more. Attaining a sense of security in your job or receiving the praise that you deserve often requires that you exert more energy in order to differentiate yourself from the rest. Consequently, longer hours at work leaves less time for family and social responsibilities, thus adding to the list of stressful factors. For some, it may begin to feel like a vicious cycle that they are powerless to stop.
Enduring the difficulties of workplace stress can be more destructive than...
Supplemental Health Insurance: Changing Workplace, Changing World
Insurance > Supplemental Health Insurance: Changing Workplace, Changing World
The Five Things You Must Know Before Buying Boat Insurance
The Five Things You Must Know Before Buying Boat Insurance
by: Ian Major
If you own a boat, you definitely need watercraft coverage.
Too often, people don't realize that they need coverage for their boats. Some don't even realize that boat coverage is available. Many know it is available, and they think about it ? they just decide that this type of coverage isn't something that they need. In most cases, they are wrong! You do need boat insurance, and you need to know what you are looking for when you start shopping for the coverage.
Here are five things you must know before buying boat insurance.
1. Many states now require you to carry watercraft liability coverage.
This coverage will should protect you against any damage that you do to other people or other people's property with your boat. The insurance should also cover you for losses due to theft, vandalism, storms, fire, capsizing, stranding, sinking, explosion, and...
The Five Things You Must Know Before Buying Boat Insurance
Insurance > The Five Things You Must Know Before Buying Boat Insurance
How Much Can You Save On Your Car Insurance?
How Much Can You Save On Your Car Insurance?
by: Derek Gardner
It costs a lot to get car insurance. No one would argue on that. Without one it would cost you more to drive if you had an accident. Still, you don't want to pay too much for it. So how can you save money on your car insurance premium?
Check several insurance companies. Don?t fall for the headline that says they got the best insurance deal in town. Find out for yourself by shopping around. It would be to your advantage to compare at least 3 quotes.
Find out how the prospective company is doing financially. Does the company have any complaints against them? What is their reputation for customer service? A good indicator of this could be seen on your initial visit. For example, did they take time to answer your questions or did they try to cut you off fast? Taking note of these things could save you some regrets later on.
Check insurance costs for the car you intend to buy....
How Much Can You Save On Your Car Insurance?
Insurance > How Much Can You Save On Your Car Insurance?
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