Business Life Insurance

Business Life Insurance can provide peace of mind for a company that if anything unexpected happens to any of its employees, the necessary financial security is in place.

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Business Life Insurance can help both your business and your employees’ family, providing financial security and peace of mind. Depending on the type of Business Life Insurance policy you take out, you can protect the financial risks to the Business but also to the families of shareholders and employees. You may be able to cover debt, loss of earnings, or provide death in service benefits. 

This type of cover has often been referred to as Business Assurance, however, assurance policies usually only apply to some personal protection policies, such as Whole of Life cover.  

Taking out Business Life Insurance can have benefits for both the business and its employees. In this section, we’ll explain:

  • What is Business Life Insurance?
  • What types of Business Life Insurance are available?
  • Who is Business Life Insurance suitable for?
  • How to choose the right Business Life Insurance
  • The difference between Business Life Insurance and Business Life Assurance 


What is Business Life Insurance?

Business Life Insurance refers to a group of policies that can protect your business from financial hardship as a result of losing an employee, as well as offering benefits for its staff.

Typically it is the business that takes out the policy and pays for the premiums. Depending on the type of policy you have taken out, either the business will receive the pay-out or the individual and their family will receive it.

Business Life Insurance can be a beneficial way of offering perks to your employees, as well as protecting the future of the business.

What types of Business Life Insurance are available?

Each type of Business Life Insurance has been designed to protect a different aspect, whether that be the business or its employees. It’s important to choose the right policy to suit your business’ needs. Business Life Insurance can cover the life of a significant employee, the life of a shareholder or the ability to pay back a business loan.

Key Person Insurance

Key Person Insurance can help a business protect its most important employees; someone who is instrumental to the financial success of the company. This type of policy ensures the business can cover any financial losses as a result of losing an employee, including loss of profit or recruitment costs.

Relevant Life Insurance

Relevant Life Insurance is a cost-effective way for businesses to provide death-in-service benefits for its employees. It’s a helpful way to attract and retain the right staff, as well as showing how much you value your employees and their financial security.

Business Loan Protection

This type of Business Life Insurance can ensure you have the right protection in place to repay any outstanding debts, should something happen to the owner or director. It can provide crucial financial help during a difficult time, making sure the business can pay back any loans.

Shareholder Protection

Shareholder Protection is an effective way of making sure there is a succession plan in place for the business. This type of insurance can ensure that when a shareholder passes away, their shares remain in the business, while the family receives the financial support they need.

Employee Benefits

Employee benefits can include Group Life Insurance, which means the family of an employee will receive a lump sum if the employee was to pass away. It can provide peace of mind for your staff, knowing their employer is looking out for them.

Who is Business Life Insurance suitable for?

If you are a business owner, it’s important to take the necessary steps to protect your business from potential adversity. You never know what’s around the corner, but Business Life Insurance can offer some mitigation from circumstances like a death amongst employees or protecting the business when taking out a loan.

Running a business can be hard, but with Business Life Insurance you can rest assured that you, your employees and other assets are protected should you experience unfortunate circumstances.

How to choose the right Business Life Insurance

With many different types of Business Life Insurance available, knowing which is right for your business takes careful thought. It’s important to think about circumstances in which your business might suffer financially. From key employees to business loans, you can protect a number of situations to ensure your business remains profitable and productive.

Our expert advisors are on hand to help you make sense of the different policies and which would be best suited to your business needs.


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Key Person Insurance

Can help you to protect an instrumental person within the business. This type of policy means the business can insure itself against any financial losses, if they were to pass away or be diagnosed with a critical illness.

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Relevant Life Insurance

Allows an employer to provide individual death in service policies to its staff. The pay-out will go to the family if the employee were to pass away or be diagnosed with a terminal illness.

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Business Loan Protection

Designed so that if a key individual in the business were to pass away, there would be financial support to help cover any outstanding debt or loans. This can include things like commercial lending, director's loans and overdrafts.

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Shareholder Protection

Sometimes known as succession planning, and can help you to put an exit strategy in place if the worst should happen. The pay-out can ensure the remaining owners or shareholders have enough capital to buy the shares back from the family.

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Employee Benefits

A business can also offer employee benefits, which is perfect for SMEs. The type of protection can range from life cover to critical illness cover and income protection.

The Difference Between Business Life Insurance and Business Life Assurance

 

The term ‘assurance’ when speaking about financial protection policies, means that you are guaranteed a payout upon the death of those covered under the policy, regardless of when this may happen. This type of cover attains to some personal protection policies, such as Whole of Life cover, or Over 50’s, where the person named on the policy is assured a policy payout regardless of the age at which they may pass away.

When speaking about Business Life Insurance, these protection policies will have a set term or number of years that you and your business are protected for. Our Protection Specialists will assess your business, your employees, and your needs as an individual and as a company and advise on the term and cover best able to protect you financially.

Do You Need Business Life Insurance?

If you are a business owner or partner, business life insurance could be very important because it can protect the business you have invested so much into, as well as your family.

Would your business experience financial strain if a key employee were to pass away? If the answer is yes, then it is time you considered finding the right business life insurance policy to suit your business' needs

Find The Right Business Life Insurance Policy

If you are new to the idea of business life insurance, or you need some advice on the right policy for your needs, the team at Caspian Insurance are here. We can compare a wide range of leading insurers, and offer specialist support and guidance to help you find a suitable policy.