Imagine if a key executive or business partner in your business passed away, or became permanently disabled, or was diagnosed with cancer and unable to work for a long period of time.
Many businesses become crippled when a key person is no longer in the business. Unfortunately, the remaining business owners and key staff often can not replace their knowledge, and this can ultimately effect the income of the business.
Concerns for business:
- Banks can call on loans to the business (due to the increase in risk) with a key person passing away.
- The business may struggle to pay executive wages for a new manager with a decrease in company income.
- It can become very hard to sell a business with large losses in income.
Key Person Cover
A well structured Key Person Cover strategy for your business provides a solution to protect you and the business should a business partner or executive pass away.
This can be implemented via a well structured and potentially tax effective insurance policy for the business owners.
We can help implement strategies to cover business loans that could cause an issue if a key person were to pass away and also provide a lump sum of money for the business to cover the salary for a new executive for a period of 1-3 years.
These simple steps could save your business thousands of dollars and even bankruptcy.
Call Jason on 0414 955 957 for a FREE consultation meeting and join a growing group of members who all enjoy the Your Life Experience.