What’s your business’s most important asset? It’s probably not what you think

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When asked, “What is your most important asset?” most company owners that we asked said it was their business or their properties. However, at Interlife we would disagree. We believe your health is a much more valuable asset. Ask yourself this, if your health deteriorated and you were unable to work, would your business continue, and would you be able to afford to pay your loans? This starts the business protection discussion.

Most companies have a business continuity plan and take out insurance to help protect their assets from fire, theft and so on. However, they can often overlook the need to protect their most valuable assets – their people. Business protection can help to protect your business should a director, partner, member or key employee suffer from a long-term illness, a critical illness, or even die. Business protection is an important part of the financial planning process for your business. It can help to pay off business loans, provide cover for key employees or help to make sure the remaining owners keep control of their company. But unfortunately, it’s one area that’s often overlooked.

Business protection should be at the forefront of every director, sole trader or partner as without this protection you expose the business to a significant risk. Premiums can be affordable and there are insurers that offer you and your employees rewards for healthy living such as free weekly cinema tickets and coffees at Starbucks. These types of benefits have been shown to increase employee engagement and help reduce the costs of insurance. At Interlife we deliver a consultative approach to our clients and design a solution to tailor your needs and budget.

Book your free Business Protection Health Audit with Interlife now – you could win a Nespresso Inissia Coffee Machine (terms and conditions apply)

The four main areas of business protection are:

Loan Protection – 65% of businesses have some form of debt, yet most businesses do not see the need to cover this. Business Loan Protection helps a business pay an outstanding overdraft, loan or commercial mortgage, should the person covered die or is diagnosed with a terminal or critical illness (if selected as part of the policy) during the policy term. When a valid Business Loan Protection claim is made, a sum equal to the outstanding debt could be paid to either the business or directly to the lender.

Key Person Cover – 53% of businesses said they would cease trading in a year if they lost a key person or owner. Key Person Protection enables a business to insure itself against the financial loss it would suffer if a key person died or was diagnosed with a specified critical illness (if selected as part of the policy) during the policy term.

A business can have many key people and a key person is anyone whose death or critical illness can lead to any loss of profits to the business. This can be in a number of ways such as clients leaving the business or suppliers losing faith.

Shareholder Protection – Over 50% of business owners have not left any will or instructions regarding the shares left behind in the event of death. Many businesses believe this is covered in their Articles of Association or in their partnership agreements but do not review this. By having shareholder protection, this gives other shareholders/partners the capital to purchase the shares of the deceased to continue and control the business.

Relevant Life – This is a life policy that is available to any employee of a business (an owner/director of a company is considered an employee) and is owned by the business and placed into trust for the employee’s beneficiaries. It is aimed at companies that are too small to offer a group life policy to their staff or to directors who are looking for more tax efficient cover as this is treated as an allowable business expense, so the business can qualify for corporation tax relief and there is no additional income tax to pay.

Do you run a company or are thinking about setting up a company? Contact Interlife or your financial advisor to find out what type of cover you should have to protect yourself and your business.

At Interlife we offer a free initial Businesses Insurance Health Audit – if you would like Interlife to get in touch to discuss your business protection needs click here and leave your details. You could win a Nespresso Inissia Coffee Machine just by registering your details.

Competition Terms and Conditions

  1. The promoter is: Interlife Ltd (company no. 10341879) whose registered office is at 48 Beechcroft Road, Bushey, Herts, WD23 2JU.
  2. The competition is open to residents of the United Kingdom aged 18 years or over.
  3. There is no entry fee and no purchase necessary to enter this competition.
  4. By entering this competition, an entrant is indicating his/her agreement to be bound by these terms and conditions.
  5. Route to entry for the competition and details of how to enter are via http://www.interlife.co.uk/contact/
  6. Only one entry will be accepted per person. Multiple entries from the same person will be disqualified.
  7. Closing date for entry will be 28/02/2018. After this date no further entries to the competition will be permitted.
  8. No responsibility can be accepted for entries not received for whatever reason.
  9. The rules of the competition and how to enter are as follows:

Simply fill in your details on http://www.interlife.co.uk/contact/ before the 28/02/2018 for your chance to win.  

  1. The promoter reserves the right to cancel or amend the competition and these terms and conditions without notice in the event of a catastrophe, war, civil or military disturbance, act of God or any actual or anticipated breach of any applicable law or regulation or any other event outside of the promoter’s control. Any changes to the competition will be notified to entrants as soon as possible by the promoter.
  2. The promoter is not responsible for inaccurate prize details supplied to any entrant by any third party connected with this competition.
  3. The prize is as follows:

A Nespresso Inissia Coffee Machine.

The prize is as stated and no cash or other alternatives will be offered. The prizes are not transferable. Prizes are subject to availability and we reserve the right to substitute any prize with another of equivalent value without giving notice.

  1. Winners will be chosen by an independent adjudicator or panel of judges appointed by the Promoter.
  2. The winner will be notified by email within 28 days of the closing date. If the winner cannot be contacted or does not claim the prize within 14 days of notification, we reserve the right to withdraw the prize from the winner and pick a replacement winner.
  3. The promoter will notify the winner when and where the prize can be collected/is delivered.
  4. The promoter’s decision in respect of all matters to do with the competition will be final and no correspondence will be entered into.
  5. By entering this competition, an entrant is indicating his/her agreement to be bound by these terms and conditions.
  6. The competition and these terms and conditions will be governed by English law and any disputes will be subject to the exclusive jurisdiction of the courts of England.
  7. The winner agrees to the use of his/her name and image in any publicity material, as well as their entry. Any personal data relating to the winner or any other entrants will be used solely in accordance with current UK data protection legislation and will not be disclosed to a third party without the entrant’s prior consent.
  8. The winner’s name will be available 28 days after closing date by emailing the following address: [email protected]
  9. Entry into the competition will be deemed as acceptance of these terms and conditions.
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Mathew Aitken

is Head of Content at Made Simple Group. This entails overseeing MadeSimple’s blogs (five in all!) and any other content we happen to be producing. In his spare time Mathew is an avid film-goer, TV-watcher and Tottenham Hotspur-endurer.
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