Research has shown that over 70% of Irish companies and partnerships currently have no business protection of any kind in place. Successful companies are made up of people with experience, knowledge, management expertise and vital business contacts. Without these people the business might not succeed.
At Declan Maher Financial Services Ltd we work with company directors and business owners providing them with peace of mind by ensuring funding is available in the unfortunate event of the death of a business partner, allowing the surviving director/partner to purchase the shareholding from the deceased’s estate. The costs of this cover can be exclusively funded by the company/firm.
We also provide company funded cover to compensate the company on the death of a key employee. Funding can help recruit, train and even pay the salary to a replacement employee for a number of years.
- Co Director Insurance
- Partnership Insurance
- Key Person Cover
- Shareholder Protection
The death of a company director can have a serious impact on the surviving directors and the deceased’s successor. Ideally, if there is sufficient cash in the business, the surviving directors would buy out the deceased’s estate. Co-Directors Insurance ensures that this cash is available. Each director takes out a life assurance policy on their own life, in trust for the surviving directors. If a director dies, the surviving directors would then have the cash to enable them to buy back the shares from the deceased’s estate.
The death of a partner can affect a business in different ways. If there is no partnership agreement in place then the partnership could be dissolved in law. If a partnership agreement exists and the partnership is not dissolved, then the surviving partners would become liable to the deceased’s estate for their share of the partnership. With Partnership Insurance, each partner takes out a policy on their own life, in trust for the other partners. Upon the death of a partner, the proceeds of the life policy would then become payable to the surviving partners, enabling them to buy out the deceased’s next of kin.
The aim of Key-Person Insurance is to protect your company on the death or specified illness of a key employee by paying out on the financial loss incurred by either of these events.
The company takes out an insurance policy on the life of that key employee, ideally until retirement age. The company pays the premiums and then receives the benefit if the employee dies or suffers a specified illness.
Business Protection Planning is a highly technical area and it is critical to get good Financial and Taxation advice when setting up such a plan. As every business is different, therefore the policies need to be set up in the most effective and suitable way for the business.