Our clients ‘Mr Allan’ and ‘Mrs Smith’ are directors of a company that has grown to a worth of £1Million. They asked us to look at protection options for the business should something happen to one of them.
How GWA helped
As the business stands, without any protection, if Mr Allan or Mrs Smith passed away then the business would be liable to pay £500,000 to the deceased’s family. It is fair to say that there are not many businesses that would be able to release that much equity and continue trading as usual; in all likelihood it would mark the end of the business. We recommended putting a key person protection policy in place that meant if the unthinkable happened then the policy pays £500K to the family of the deceased. This way the business can continue trading and the family of the deceased has been amply provided for.