Financial Choices can provide advice and assistance to small businesses in a number of areas.
Many firms have key employees, perhaps the star salesperson or the IT manager, without whom the business would struggle to function successfully. In such a situation the profitability of the business may suffer substantially and keyperson cover is sometimes referred to as “loss-of-profits” insurance. Keyperson insurance can provide a fixed lump sum should a key individual be critically ill or even die. The payment will be designed to cover the firm’s expenses in meeting any emergency costs, recruiting a replacement and protecting the future of the business.
Small incorporated businesses typically have a limited number of shareholders, often the two founders of the firm. If a shareholder were to pass away, the firms remaining shareholders or directors may want to purchase the deceased’s shares from their estate promptly to maintain control of their business. A carefully arranged life insurance arrangement will provide the right funds in the right hands at the right time.
Partnerships are unincorporated businesses but the same problems arise and can be solved as outlined above.