Displaying items by tag: small business

How much life insurance cover do I need?

This question has always intrigued me because it sounds similar to the equally difficult to answer question, ‘how long is a piece of string?’

I suppose the answer is, ‘as long as it needs to be and as much as you need to have’.

But that's probably not going to move the answer along much, so here is a good place to start your thinking.

Published in Blog

Business Owners and Professional Partners have unique risks and needs not usually adequately covered by their private family insurance plans.

Business is filled with uncertainty. Now you can plan for that.

While the risks to businesses are seemingly unending, the personal risks to Owners and Professional Partners can usually be found in 4 areas.

These become increasingly sensitive and complicated issues for business owners and business partners who may have specific personal medical issues that deserve an enhanced level of privacy and are kept totally separate from their commercial activities.

  • Company directors may need to use life insurance to protect the company trading debts, the director's account (when Director's funds have been lent to the company) or to protect the capital investment.
  • Business partners may need to use insurances to limit becoming personally liable for company losses as their personal homes are often cross-securing the company debts.
  • Partnerships and Investors may require company key-persons to use a range of insurances to help protect capital invested.

Why is this really important?

Personal insurance applications are one of the very few areas in business life where an individual's personal health and lifestyle is mandatorily required to be disclosed.

  • Your private health and lifestyle history is considered an integral part of the insurance application and assessment process. This is because personal insurances are contracts between the life insured/policy owner and the life insurance company, so there's a legal duty to take reasonable steps not to mislead under Section 20B of the Insurance Contracts Actrequiring the full and frank disclosure of all personal sensitive medical and personal health data.
  • Should an application for insurance be formerly declined, this can have unintended and long-lasting effects on so many areas that it becomes a risk to all future insurance.

This is why you need a specialty financial adviser from unusualrisks.com.au to help an individual and their company through the process.

Read our article published on LinkedIn Pulse - Professional people with chronic health conditions need their own life insurance adviser - and this is why (or in our blog here) about why many professionals and business owners are using our services for enhanced privacy.

How it all comes together.

Business Key Person and Debt protection

The death or disablement of a key person could have a significant impact on the revenue of a business and therefore its ability to meet its day-to-day expenses.

  • This could be because the key person for example, has a unique skill or has particular knowledge relevant to the business or has relationships with key clients nationally or internationally.

Business Fixed Expenses protection

Business Overheads cover, (also known as fixed business expenses cover), allows a business to continue to pay its fixed expenses if one of the business owners becomes sick or injured.

  • This type of cover usually pays a monthly benefit to the business, to meet its day-to-day fixed costs, generally for up to 12 months, if the insured person is disabled and is unable to work in the business at their full capacity.
  • All family businesses need an insurance firewall to reduce business liabilities becoming personal liabilities.

Insurance policies to cover business overheads are generally owned by the business entity, sole traders or partners (in the case of a partnership and the policy premiums are generally tax-deductible, and the proceeds treated as assessable income to the business.

Building protection into your business planning is one of the most important decisions you can make.

Business Owner and Professional Partnerships protection

At some point, many businesses will borrow money from a financial institution or a director – this may be to provide a business with capital for a major purchase or improvement, or simply to provide a source of working capital.

The purpose of business debt reduction insurance is to protect the business against its debts and to protect the guarantor and their estate against any claim over their personal assets.

  • If the Key-person or Guarantor to a business loan experienced a serious illness, accident or worst - an unexpected death - a business could experience significant financial difficulty and may find it hard to continue to meet all of its loan repayments.
  • A loan default could result and then trigger a 'call-up' of the business loan facility (usually 7 days notice) with a demand for the loan to be repaid in full.

Most 'at call loans' deem a Key Person death or disability as an automatic trigger event to call up the loan.

Business Owner & Partner Succession protection

If you own a business with other people, it’s important for everyone to agree on how the ownership of the business will be transferred, should one of the owners (or principals) pass away, become disabled, or leave the business for another reason; eg: resignation or retirement.

  • This is referred to as business continuation or succession, planning.

How that is made possible is usually heavily dependent upon;

  • successfully applying and establishing personal insurances for protecting business risks, and
  • involves the full and frank disclosures of all personal sensitive health and lifestyle information.

These create multiple specialty risks.

Unusual risks are the experts to manage and protect the information security and advice structures required by these business owners and professional partnerships.

Where to now?

  Discover someone with a similar situation in our Case Studies.

  Have questions? See our Frequently Asked Questions.

  Make sure you Browse through our Blog.

  And when you're ready to know if we can work with you take our Anonymous Pre-assessment.

#LoveTakesAction

Published in Services

Professional people with chronic health conditions need their own life insurance adviser

Many people in professional business use life insurance products but ...

Published in Blog

I’m in business with other people and we need to protect ourselves from the usual business debts. Can you work with my business colleagues and keep my private health details private as well?

Absolutely. People in business (especially those working with a team of multiple business partners) are at a higher statistical risk of business interruption due to accident or ill health in the management team. We can work with a business, identify the points of vulnerability and tailor a solution.

When we implement the businesses solution, we also work individually and discretely with the business owners and keep confidential everyone's personal health status. All personal data is individually quarantined and is never shared with anyone else in your business.

Published in Most Common

Fast Site Search

Pic of Advisor Drew Browne (he/him)

Drew Browne (he/him)

Senior Advisor to Unusualrisks
& Sapience Financial

 

Download Our Latest Free eGuide

Download our latest free eGuide for Queer Families, Gay Dads, Lesbian Mums, Parenst & Co-parents and Rainbow Families

Download Our Free Helpful eGuide - 7 Financial Decisions for Same-sex Newlyweds

Download the female cover version of 7 Financial Decisions Same-sex Newlyweds need to make

 

Download the male cover version of 7 Financial Decisions Same-sex Newlyweds need to make

Take Our Anonymous Pre‑assessment

Find out in 60 seconds if your personal situation is one we can work with.

No contact info required

Start!

Use your mobile device to take a pre-assessment

Read Our Case Studies

Click below to browse different case studies and see how we've helped people feel safer and more secure in their life and work.Read through over a dozen individual Case Studies



Take Our Anonymous Online Pre‑assessment

Find out in 60 seconds if your personal situation is one we can work with.

Take Our Pre-assessment

Take Our Anonymous Pre-assessment

Whatever your situation, we can help you

  • Single

    Age is no indicator of relationship status or financial responsibility.

    • You can be young and starting out or older and established; and both enjoying living the single life.
    • You might be single, single again, sometimes single, single with kids, single with pets or perhaps something a little more complicated.

    When it comes to being single in the LGBTQI+ community, there's really no such thing as average.

    And it's your single life, so live it your way.

    Read more...
  • Partnered

    Sharing life and love with someone can be twice as exciting.

    • You might be partnered, partnered with pets, officially de facto, officially married (yay!), splitting expenses but sharing life, or joining incomes and combining financial lives too.
    • You might be together but living apart, working towards a future with kids, thinking about fostering, adopting, IVF or surrogacy; or perhaps something a little more complicated.

    When it comes to being partnered in the LGBTQI+ community, there's really no such thing as average.

    There's no right or wrong way to live a purposeful life, just what works for you both.

    Read more...
  • Parenting

    For today's LGBTQI+ families, there are no accidental families.

    • You might be parenting and single with kids, parenting solo with kids, parenting and partnered with kids, (yours, theirs and ours), dual parents with kids, co-parents, foster parents, adoptive parents, or even adoptive parents of kids with additional needs (just beautiful!).
    • You might be a lesbian co-parenting couple or super involved 'Guncles' or Aunties. You might not even identify with the broader LGBTQI+ community but find yourself a parent in a same-sex relationship, or perhaps something a little more complicated.

    When it comes to parenting in the LGBTQI+ community, there's really no such thing as average.

    However you're doing it, Love makes a family.

    Read more...