| The death or serious illness of a key employee can have huge implications for a business. You can make provisions using one of the options below:
Key Person Assurance
This allows a business to plan for the potential financial loss that it could suffer on the death or specified illness of a key employee.
Corporate Shareholder Protection
This allows for shareholders to purchase the shares of the deceased shareholder subject to terms and conditions. This means that you can plan to have sufficient money from a life policy for the other shareholders to buy the shares from the family of the deceased.
Executive Income Protection
A company can choose to cover its key employees for Executive Income Protection. The cost of the plan is paid by the employer on behalf of an employee.
Employer Benefits
- Contributions to an Executive Income Protection can qualify for tax relief as a deductible business expense.
- The employer is protected against ongoing responsibility for an employee and his/her dependants in the event of disability.
- Provision of Executive Income Protection promotes greater loyalty from employees.
- The plan can be an effective method of managing absenteeism costs.
Employee Benefits
- The plan does not attract tax or BIK for the employee so is seen as a very attractive Incentive.
- Contributions are paid by the employer.
- A wide range of additional benefits are available under these plans including pension premium cover.
Important Information
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