Protection

Because if the worst were to happen, you need to make sure that the financial security of your family, your business and the future is taken care of.

Protectionagainst the unexpected

Protect yourself, your family and your business against the unexpected

Protection is something that can often be overlooked.

Individuals

Ask yourself how your family would manage if you were too ill to work or died suddenly?   How would they cope if you were no longer around to financially support them?

Businesses

How would your business respond if a key employee was diagnosed with a critical illness or died, or if your business partner became too ill to work or died suddenly?

If this were to happen, who would be in control of your business and what impact this could have on future profits and the businesses’ overall valuation?

You cannot prevent these circumstances from occurring, but you can ease the unexpected financial implications by arranging adequate protection.

Types of protection available

How we help

For many, taking out life insurance is simply a way of helping to protect those that we love by ensuring that they can maintain their lifestyle, should you no longer be around.  There are three basic considerations when looking to buy life insurance (also known as life cover).

What do I wish to protect?

It is important to gather all details together before obtaining a quote.  Do you have a partner or dependent children, a mortgage or other outstanding loans?

How much cover will I need?

  • If you have a mortgage, how much is outstanding?
  • How much would your family need to maintain their lifestyle without you there to provide for them?
  • Think about your income and outgoings, including items such as mortgage payments and utility bills.
  • Consider childcare costs, and perhaps days out.
  • What might your family require in the future, possibly university fees etc?

How long do I need life cover for?

Consider when your mortgage is due to be repaid, when your dependents might leave home, or when your partner might wish to retire.

 

 

If you are in business, you need to consider what would happen if you or your business partner were too ill to work or died suddenly.

Without the capital to buy the shares, you could find yourself working with whoever inherits them, or with anyone they decide to sell them to. Either way, if they had a majority shareholding it could mean an unknown boss calling the shots.

By putting shareholder protection in place, you could make sure the business gets the funds to buy back the shares from a critically ill partner or their estate, which benefits everyone:

  • The remaining partners keep control of their business
  • The affected partner or their estate gets fair value for selling their share of the business; and
  • Using an appropriate agreement can make sure any transactions are tax efficient.

Many small businesses rely on a few key individuals who occupy a number of roles within the organisation. The loss of any one of those individuals could pose a real threat to the financial stability of their business.

Taking out Key person protection provides capital (depending on the cover selected) in the event of a key person being diagnosed with a specified critical illness or dies. This cash could give a vital lifeline to pay loans, ease cash flow and fund training and recruitment of replacement staff members.

We will help you identify your individual protection needs and guide you through the various types of cover available to make sure you get the right cover at the right price.

 

If you own a small business there’s a brighter way to buy life insurance for yourself and your key employees. With a relevant life policy, the business makes the life cover payments not the person who is covered. This means that you won’t pay any national insurance contributions or income tax on the premiums, but you still get the benefits of corporation tax relief; that all adds up to big tax savings.

How a Relevant Life Policy can cut Company costs
Ordinary life cover Relevant life cover
Premium £1,000 £1,000
Company Gross Costs Employee’s National Insurance contribution at 2% £34 nil
Income tax at 40% £690 nil
Employer’s National Insurance contribution at 13.8% £238 nil
Total gross cost £1,962 £1,000
Company net cost Corporation tax relief at 19% £373 £190*
Net cost £1,589 £810*

* Assumes that corporation tax relief at 19% has been granted under the ‘wholly and exclusively’ rules. In both cases, we’ve assumed a payment at £1,000 each year for the life cover on an employee who’s paying tax at 40% and employee’s National Insurance at 2% on the top end of income. We’ve also assumed that the employer is paying corporation tax at 19% and will pay employer’s National Insurance at the rate of 13.8%. Current tax rates applying for tax year 2018/19, the levels, bases and relief of taxation may be subject to future change.

Our clients are what make us

Testimonials

We are very happy to recommend Shorts Wealth Management and Simon for pensions advice.

Mike and Jane
from Wingerworth, Derbyshire

We very quickly knew that our interests were in good hands.

Julia Procter
Director

Shorts have been advising our family since 1969.

Jamie Dennis
from Matlock, Derbyshire

Shorts’ knowledge and expertise quickly identified a suitable solution.

Martin and Melanie Southwell
Directors

I look upon Shorts as a ‘safe pair of hands’.

David Bowring
Bowring Transport Ltd

Excellent wealth management bringing security and success.

Frank Berry
Chesterfield

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