You protect various aspects of your business, such as your company property, your company vehicle, your staff, and your customers, from risk with business insurance but you must also protect yourself and any other person who is key to the survival of your business.
Business protection is intended to provide life insurance for people who are essential to the continuation of your business and is a key component of your business planning for the future. If the death of one or more persons would threaten the future of the business then it is crucial to protect them with business life insurance.
Protect yourself
If you are a sole trader or you have your own business, and your business provides an income for your family or dependents, then you should consider purchasing personal life insurance, or joint life insurance to protect both you and your spouse.
A term life insurance policy will provide a cash lump sum should you die leaving your family without your income during the period of cover specified in the policy and is a more affordable form of life insurance. You can also add serious illness cover to provide a lump sum if you are diagnosed with certain serious illnesses and unable to maintain your business.
The benefit or lump sum provided can be used to replace your income, to pay off personal debts or a mortgage, or to provide financial security for your loved ones. Even if your spouse is a stay at home parent, protecting their income will provide financial security and cover bills such as additional childcare etc. to enable you to continue to run your business.
Protect your business
Business protection will provide cover to allow your business to continue following your death as a business owner, or the death or serious illness of a business partner, shareholder, or key employee.
In the event of the death of a partner or shareholder, their stake in the business can be bought from the family of the deceased, allowing the remaining stakeholders to retain control of the business and providing financial support to the next of kin of the deceased.
The benefit provided by business protection can also be used to pay for a mortgage or any loans or debts of the business.
There are several forms of business protection which you may consider, depending on the structure of your business.
Do you have to have life insurance as a business owner?
Life insurance is not a legal requirement in all cases but it is an essential form of protection where your business relies on your input or the work of a partner or co-director, or a key employee.
If your business has a business mortgage or significant debts, then may be required to have business protection in place by your lender.
Business life insurance also provides financial protection for your business and your family or other dependants. It can provide security and continuity for the business to weather the difficulties of the death or serious illness of a central person, and provide a lump sum to replace your income for your family.
Business protection also provides peace of mind that the future of your business is assured and avoids potential financial and legal pitfalls that an unexpected death could bring.
Group life insurance
Protect your employees with group life insurance, also known as death in service benefit. This is a life insurance plan set up by an employer for selected, or all, employees of the business.
Group life insurance provides a benefit in the form of a lump sum, or a monthly income, to families of your employees should they die providing financial security and peace of mind. This can be an attractive benefit to recruit and retain employees.
Group life insurance policies are paid for by the employer but there are tax incentives to provide this benefit to employees and providing life insurance as a group life insurance policy means that costs are lower than for individual policies.
Another advantage of group life insurance is that protection is provided with less stringent underwriting criteria, individual employees will not have to provide medical information if the cover provided by the policy is below a certain amount, for example.
Who offers business protection in Ireland?
Some or all forms of business protection are provided on the Irish market by:
How much does life insurance cost for business owners?
Business protection premiums depend on many factors unique to each business such as the size and turnover of the business, and the number of shareholders or employees protected.
Some forms of business life insurance, such as co- director and keyperson insurance and group life insurance may be tax deductible in certain circumstances. It is essential to obtain legal and taxation advice to ensure that you put the appropriate business protection in place as this is a complex form of insurance.
Whether you are a large corporation, a small or medium business, self employed, or a sole trader, Compare Insurance has qualified financial advisors to discuss your business insurance needs with you and provide a tailored quote for affordable business cover including business life insurance.
Compare Insurance for business protection
If you are a business owner who is interested in taking out a life insurance policy or changing policy, speak to Compare insurance today. We are Ireland’s leading experts in insurance.
We can discuss tailored protection plans for your business and life insurance for you and your employees and get you the best quote for business life insurance.
Fill in our online assessment, or call or email us and you can benefit from a free consultation with a Qualified Financial Advisor to start saving on your business insurance today.
