by: Michael Challiner
Last month I had to drive down to London. I don't like driving at the best of times but the rain, spray and heavy traffic on the M1 made conditions difficult. Radio 2 kept me company and the heater kept me warm. Then I hit that queue - six miles solid and I was soon an hour behind schedule.
They were still clearing up the accident when I got there. It was nasty. A lorry and what was left of two cars. Made me think, after all that could have been me. Yep, my life insurance is up to date and my Will was renewed only last month. The family would be well cared for and the mortgage repaid. Had I missed anything?
The business. What would happen to that? We have two directors, 7 employees, an overdraft and lots of insurance. Public Liability, professional indemnity, vehicles and stock are all insured. We even have legal protection insurance. Had I missed anything? I got to thinking.
Thank goodness it wasn't George in that accident. A great guy and he's been with us five years. He's our top salesman. There again what if it had been my co-director who also owns 50% of the business? What would be the repercussions on the business?
Sales down, profits down, bank phoning all too politely to ask about the Directors guarantee on the overdraft. Then I'd have to try and buy his shares. I wouldn't want someone else to get hold of those. At some stage I'd have to recruit someone of his calibre to continue the company going forward - that wouldn't be easy! And recruiting top people doesn't come cheap. That's more time and more money. The personal problems ?? the repercussions ??.. the extra work ??? the extra stress ??..
Oh heck, I don't want to think about it all. Quickly, switch over to Radio 1 .
Does all this ring alarm bells with you? 95.2% of UK businesses employ less than 10 people and these are precisely the organisations most at risk from the impact of severe illness or death of a key person. The risks of a key person being stuck down with a long term illness or death are real. 1 in 5 men suffer a critical illness before their normal retirement age. Then there's the M1. The fact that it hasn't happened so far might just mean your business has just been lucky.
Now to those actuarial boffins in insurance companies, risk and luck are flip sides of the same coin. And they can provide insurance cover for most risks. After all they too want to increase sales. But they're scratching their heads about Keyman Insurance. Most of Britain's 4.1million small businesses should have it but few do. What can it do? It can be structured to:
Provide an income stream to the company whilst the key person is incapacitated (compensation for the lost contribution from the Keyman)
Provide a lump sum to the business in the event of death (pay off the overdraft or simply bolster cash flow?)
Provide money for remaining shareholders to buy the shares from the original shareholder or their estate
You'll need to talk to a Financial Adviser about these issues but they are all insurable. Can your business afford to take a risk it doesn't need to?
Memo to myself ? get Keyman Insurance!
About The Author
Michael Challiner is the chief editor of Express Life Insurance offer life insurance and mortgage insurance. Additional reading - Smokers Life Insurance - http://www.express-life-insurance.co.uk/will-i-get-charged-more-as-a-smoker.htm Additional Reading - Does my life insurance policy work abroad ? - http://www.express-life-insurance.co.uk/does-a-uk-life-insurance-policy-work-abroad.htm
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The Death Of The Muscle Car ? My First Case
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by: Warren Newson
How could muscle cars, the most powerful affordable cars the world had seen, lose their oomph so quickly? What caused them to disappear? I?m not a private eye, not remotely like one, but this was one case I had to solve.
It happened back in the 70?s, but the evidence was still there. It was the case of the disappearing horsepower and this is what happened.
In the era of the muscle car power was everything. It didn?t matter what it was, sports car, family car, pickup; it had the biggest V-8 possible stuffed under the hood. Cubic inches were king and advertised power was astronomical. These cars could kick sand in the windscreens of anything else on the road.
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The Death Of The Muscle Car ? My First Case
Car insurance > The Death Of The Muscle Car ? My First Case
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The most important thing to know in these situations where the car dealer is offering you vehicle financing, is that you do not have to take your car loan from the dealer. There are a host of alternative car loan sources that will be willing to lend you the money you need to buy the car, such as banks and other lenders, and if they are reluctant to lend you the money you need, perhaps this is an indication that you cannot afford the car and should look at buying something cheaper or waiting till you have a...
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Car insurance > Cheaper Car Loans
Advantages Of Whole Life Insurance Policies
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The whole life insurance policy assures you a guaranteed death benefit that never decreases and upon death is usually free of federal income taxes. If you choose you may take the death benefit in the form of a monthly income instead of a lump sum.
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Advantages Of Whole Life Insurance Policies
Car insurance > Advantages Of Whole Life Insurance Policies
Critical Illness Insurance. Big Changes On The Horizon
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