Financial protection services
It can often be a challenge to obtain a mortgage these days. It can also be a challenge to pay your mortgage & bills if something happens to your health, life, or business that affects your level of income.
Individuals*
For the individual or family taking out a mortgage an accident or illness could prevent you from working and thus a drop in income could affect your ability to pay your mortgage & bills. Also, the death of the applicant or one of the applicants could also put at risk the home as the income would cease, and the other owner and/or others living in the home could be at risk of losing it. Would you want to risk losing your home for you or your loved ones at a time when such an event would have such an emotional impact on you or your family?
*Protection is dealt with on a referral basis by Stonebridge Protect who are the trusted partner for us in this arena.
Business Owners*
As a business owner your protection needs could be different from that of an employed person. These needs can range from setting up your own ‘death in service’ life cover type arrangement for you (and your other company directors and/or employees if required), business loan protection, shareholder protection and key person cover.
Relevant Life cover is a ‘death in service’ benefit for directors/employees of small companies.
Shareholder Protection
Shareholder Protection is designed to protect the family/estate of the director(s) so that on the event of death or a critical illness a lump sum can be paid to the remaining director(s) to buy the share of the business.
This enables the remaining director(s) to retain ownership of the company whilst the affected director (in the event of critical illness) or directors’ family/estate (in the event of death) receives a lump sum for relinquishing their stake in the company. Even if you have taken out such cover previously does the amount of cover reflect the current value of the share of the company and therefore due for review?
Business Loan Protection
Business Loan Protection is designed so that should the owner/company director die or become critically ill during the term the business loan is repaid so that the business having been effected by this event doesn’t have to worry about paying the business loan and can focus on continuing, recruiting, or selling the business accordingly.
Most banks when providing such loans require the business to take out life cover with the single provider on the key person/director(s). This can often be more expensive than using a mortgage/protection firm which deals with a range of insurers and should be reviewed regularly.
Key Person Cover
Key Person Cover is designed to pay out a monthly amount in the event of being unable to work due to an accident or illness so that the individual affected isn’t a financial burden on the business. It could also be used for example to pay the wages of someone recruited temporarily thus reducing the extra cost of a key person being absent from work.
Summary of key areas of possible protection needed for business owner:
Life Cover
Critical Illness Cover
Income Protection (Short or long-term permanent accident & sickness cover)
Relevant Life Cover (Tax efficient small company Death in Service Benefit)
Shareholder Protection
Business Loan Protection
Key Person Cover
*Protection is dealt with on a referral basis by Stonebridge Protect who are the trusted partner for us in this arena.