 | Who are they - Directors, top salespeople, managers / technicians i.e.
those most difficult and costly to replace |
| What does it do - covers a fall in profits due to lost orders; repays bank
loans, directors’ loan accounts and trade creditors; pays salary of a
temporary manager; covers cost of recruitment & retraining. |
| How to identify key people - If they become seriously ill or die would:
customer confidence fail; shareholders become nervous; loans guaranteed by
that person be recalled; a replacement be difficult to find; affect current
projects, orders, campaigns etc. |
| Is it necessary - 15.9% of 45 year old male executives die before age 65
(Standard mortality tables AM80), one in 6 males aged 30 will have had a heart
attack before age 65 (ERC Frankona 1997) |
| Is the cost worth it - an example: Male 45 years old - cost of motor
insurance for £27,000 company car £810 p.a. - cost of £100,000 5 year term
insurance £175 p.a. Is there any comparison to be made ? |
| Easy to arrange - we provide the necessary expertise to take care of
underwriting, taxation matters and any Draft Board resolutions required |
| How much cover - rule of thumb is between 5 to 10 times remuneration or
via attributable net profit basis over a 5 year period e.g. Average profit
£200,000, attributable net profit 50%, recovery period 5 years, cover required
is £200,000 x 50% x 5 yrs = £500,000 |
|
The objective is to put
the right money in the right hands at the right time
Either complete our
General Enquiry Form or
e-mail us for further
information
|
