Ownership Protection
‘Buy/Sell Insurance’ |
- Protects owner’s interest in the business and ensures orderly handover and ‘perpetuity’ of the business.
- Fundamental to incorporate insurances into a ‘Buy/Sell’ agreement.
- Insurances provide the funding mechanism for the Buy/Sell agreement.
- Ownership of insurances structured in variety of methods eg Self-owned, Cross-owned, Trust, Company or Super.
- Generally not tax deductible, nor tax assessable.
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| Key Person Protection |
- Protects the business against the loss of a person who makes a significant contribution towards profitability and stability of the business.
- For revenue or capital purposes. E.g. replace loss of revenue as a result of the death of a Key Person.
- Insurance is owned by the business.
- Tax deductible for revenue purposes only and tax assessable.
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Assets Protection
‘Loan Guarantor’ insurance
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- Protects against guaranteed liabilities of the Business.
- E.g. Funds to extinguish all or part of business guaranteed bank loans or supplier loans.
- Insurance is owned by business.
- Generally not tax deductible, nor tax assessable.
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| Business Expenses Protection |
- Protects against the fixed expenses of running the business.
- Does not cover Business Interruption eg flood damage or fire.
- E.g. Provision of monthly income for business to pay for such items as rent, non-income producing staff salaries, insurances etc.
- Either self or business owned insurance.
- Tax deductible and tax assessable
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| Estate Equalisation Protection |
- Creation of wealth to offset assets which are not easily divided in the case of the death of an owner.
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