Marcus’s Executive income protection and key person cover

Description

Marcus is a business owner who runs a small manufacturing company with a turnover of £2 million. The business has been running for 10 years and has grown steadily during that time. Marcus is the main driving force behind the company and is responsible for sales, customer relations, and strategy. The business has one other key employee, who manages the day-to-day operations of the factory as well as several other staff.

Key Challenges

Marcus is concerned about what would happen to the business if he were unable to work due to an illness or injury. As the main salesperson and strategist, his absence could have a significant impact on the business’s revenue and profitability. He is also concerned about the personal financial impact that his inability to work could have on his family’s income.

Outcome

After discussing his concerns with us, Marcus decides to take out executive income protection through his business. This policy would provide him with a monthly income if he were unable to work due to an illness or injury. The policy premiums would be paid for by the business, making them tax-deductible. He also decided to take out key person life and critical illness cover so that the business would receive a lump sum on his death or earlier diagnosis of a critical illness.

This would ensure that the business could continue to operate in Marcus’s absence and that his family’s income would be protected. Additionally, the policy would provide peace of mind for Marcus and allow him to focus on growing the business without the fear of financial ruin due to an unexpected illness or injury.