Business Risk Insurance ensures there is a clear and delineated succession strategy should something unforeseen happen to a business owner or their key staff. This is an area that can have a huge impact on the proprietor’s wealth and the worth of the business.
For example, Darren and Stuart own 50% each of an I.T. company worth $1,000,000. Even though he is only 36, Darren dies suddenly and his wife Megan (a nurse) inherits his share. Knowing nothing of the business, Megan would prefer to take $500,000 for her husband’s share but Stuart cannot raise the money. The two are now forced to run a business – one that Megan has a strong vested interest in, but very little knowledge – together. A well-structured business risk strategy would have ensured this situation was avoided and that both parties were satisfied.
Key Person Risk Insurance provides a lump sum payout. It’s designed to pay down debt or provide ongoing business revenue in the event of the death or disability of a key person.
Buy/Sell allows for the funding and transfer of ownership of a stakeholder’s share should something unforeseen happen to them.
Business Expense Insurance covers up to a year’s worth of expenses related to the running costs of your business if the insured is unable to perform his or her duties.
Without a good understanding of your financial strategy, your finances may end up controlling you rather than the other way around. So we work with you, not for you, in order to give you an appreciation of why we’re doing what we’re doing and give you faith in our investment advice. Better still, this allows us both to better set and meet each other’s expectations.