Life Cover

Hello all,

I have a small ltd company, which provides me and my family with a living - it's a one man show, with just myself employed. I never looked at life insurance in the past (not so much spare cash & no dependants) but now I want to address this , as I'a now married & new baby. My question is, should i get my life cover through the company or do it separately ?

J.P.

I'd say you are looking for an assurance product called 'Keyman' Insurance which is for persons who run a business and if something was to happen to them, this assurance would kick in.

Hi mercman,

Many thanks.

J.P.

I dont think mercman is correct:
Keyman cover is where a Company insures a key employee and in the event of death the sum assured is paid to the Company.

What the poster needs is family protection cover, where in the event of death the sum assured is paid to his estate/family. The way to do this , with the Company paying the premium, is through Executive Term Assurance. There are some limitations, but the premium can be paid by the Company with no BIK in the hands of the Director.

You can always get two policies- one, a policy that will have your wife and child as beneficiaries, and help cover costs like mortgage and credit card debt (outstanding debts that need to be cleared so the family won't have financial burden in your absence), replace income for a few years (which allows your surviving spouse some leeway to find a job and stand on her own feet again) and of course, funeral costs and related expenses like medical bills. Another policy can cover work, to make sure that the business can carry on if necessary, especially if others are relying on the jobs you've created for their livelihoods. This type of insurance is typically bought in a partnership, but you could talk to an insurance agent about the best low cost term life insurance options available for a small business owner.

Pat Cassidy
Disclaimer: I work for AccuQuote and this is my personal opinion.