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Business protection insurance

You might think of a protection policy as something that is taken out by a private individual, to protect against the adverse financial consequences of death or illness.

Moneysworth is, however, equally well placed to provide advice to businesses, both large and small, on steps they should take to protect themselves against the adverse consequences of an unexpected or unwanted event.

We can assist companies across all business sectors, and we can help everyone from sole traders to small partnerships and companies and much larger enterprises.

Why you need business protection

The reasons why you should consider business protection are many and varied. If a key person within your business was to pass away, or contract a serious illness, then:

  • You might want to buy back their share of the business, ensuring you retain control of the company
  • There might be concerns over whether this unfortunate event will lead to a reduction in revenue and profit
  • The loss of that person’s technical expertise, experience, entrepreneurial flair or ability to strike deals and contracts could be devastating. A large proportion of UK businesses employ less than 10 people, where there might be little opportunity to replace a key person’s skills from within at short notice
  • You might need to incur significant costs in hiring and training an internal or external replacement
  • There might be a need to repay a business loan immediately, especially if the person who has passed away was the guarantor. 75% of UK businesses have some form of debt

Who might be a ‘key person’?

A ‘key person’ could conceivably mean any of your directors, managers, significant shareholders or technical experts. It might refer to anyone who generates significant revenue or who acts as a ‘figurehead’, ‘public face’ or ‘ambassador’ for your company. It could be the person for whom the very idea of them taking a holiday, or handing in their notice, fills you with dread! 

Whatever your balance sheet might say, savvy business owners know that their people are their greatest asset.

What forms of business protection are available?

Moneysworth can assist in arranging policies such as:

Shareholder and partnership protection. If a shareholder or partner dies, then their share of the business will be inherited in line with what is in their will. If they don’t make a will, then it will be distributed in line with the laws of intestacy, which usually means it will pass to a close relative.

It’s quite likely that you won’t want a shareholder’s relative to continue to own a significant share of the company in the longer term, so your instinct is likely to be to buy back the shares that they have inherited. It may also be the preference of the deceased shareholder’s relative that you buy them out, especially as they may be faced with an emotional dilemma at having inherited the shareholding.

You, or your business, may not, however, be able to produce the funds at short notice for such a large outlay. It may also be impossible to borrow a sum of money for this purpose, or the cost of doing so may be prohibitive. A shareholder protection plan is a type of life insurance that will provide you with the funds to purchase the inherited shareholding.

Business loan protection. This is another type of life insurance, which ensures funds will be available to pay off important business loans should a key person die or become critically ill.

Key person insurance. This type of policy provides a cash lump sum should an important person within your company die or become seriously ill. You can then use the funds to cover loss of profit and/or the costs of hiring and training a replacement.

Relevant life insurance. In many ways, this works in a similar way to personal life insurance, in that a specified sum is paid out if the insured person dies during the term of the policy. With relevant life cover, however, the premiums are paid by the insured person’s employer. The policy does not form part of the insured person’s estate for Inheritance tax purposes. Premiums paid by employers aren’t normally considered to be a benefit in kind, so they’re not subject to income tax or National Insurance.

Executive income protection. Individual income protection works on the basis that a replacement income is paid to the insured person should they become unable to work due to accident or sickness. Executive income protection is taken out by the business, and it is the business that receives an income should their key employee become unable to work.

Want to find out more?

If you are interested in business protection, then contact Moneysworth today.

If you have a life insurance policy, you might think that the only role your insurer plays is to provide you with vital peace of mind. You pay your premium each month and, in return, the insurer keeps your policy in force, one which will provide much needed funds for your loved ones should the worst happen.

Increasingly, however, insurers are developing new ways of supporting their customers.

For example, the following support services might be on offer:


  • General counselling
  • Bereavement counselling
  • Mental health counselling
  • Support when recovering from illness

Medical Helplines

  • Second medical opinions
  • Wellbeing support helpline
  • General health helpline
  • Remote GP services

Other Medical Services

  • Physiotherapy advice
  • Health MOT etc.
  • Wellbeing videos
  • Annual health checks
  • Nutritional support
  • Neurological therapy
  • Prescription delivery

Financial Assistance

  • Assistance with travel costs
  • Hospital parking payment help
  • Physiotherapy costs help

Other Services

  • Recruitment of replacement staff for your business when existing staff become ill
  • Access to solicitors, e.g. for probate
  • Consumer rights guidance
  • Employment rights and other work issues advice
  • Financial guidance
  • Advice for carers

No one insurer will offer all of these, and the exact level of support varies from one provider to another, but it’s likely that your insurer will offer quite a few of these support services.

This support is very welcome indeed in the modern world, where cost of living pressures are all too obvious, and where one in four of us experience mental illness, not to mention the fact that many people struggle to get NHS GP appointments.

Life insurance is something you should very much be considering from the start of your adult life, especially if you have children, or a mortgage, or you earn more than your partner.

Income protection – which pays a replacement income should you be unable to work due to accident or sickness – is something you need to consider taking out as soon as you are in employment. What would the consequences be were you to cease receiving a wage and be forced to reply on the very limited state support?

Critical illness insurance might also be appropriate for adults of any age – after all you can be diagnosed with a serious illness at any age, no matter how young and healthy you might feel. This type of insurance is often taken out to protect a mortgage, and ensure the balance is paid off were you to be diagnosed with a critical illness. It is important to note, however, that critical illness can be a useful way of ensuring that you (and any children) can receive a lump sum to pay for medical treatment or nursing costs, or for the necessary modifications to your home to adapt to your condition.

Examples of insurance Moneysworth has arranged for under 30s in 2024 include:

  • £100,000 of combined life and critical illness cover over a term of 30 years, for a 28-year-old-woman to cover her mortgage. The premium was £31.05, and this was more than the standard cost of this insurance, owing to the client’s mental health issues
  • £1,300 per month of income protection benefit or a 27-year-old man, with the benefit amount to increase each year in line with inflation. This benefit level covered around 70% of his take home pay. The benefit would be paid for a maximum of two years’ absence from work. Although the plan runs to age 68, the premium was just £15.47 per month.
  • £171,000 of life cover over 32 years, at a cost of £16.60 per month, for a 26-year-old woman. The amount paid out will decrease over time in line with the expected reduction in the balance of her capital repayment mortgage. Here, the insurer increased the premium by £7 per month owing to the client’s mental health disclosures.
  • £285,000 of decreasing cover to protect his mortgage, plus an additional £50,000 of level cover for his family. These were arranged over 35-year terms for a 26-year-old man, at a combined cost of just £23.12 per month.
  • £260,000 of life cover for a 29-year-old man, which provides enough to clear his mortgage in the event of death, plus an additional amount for his family. The policy also provides a level lump sum of £25,000 should his child be diagnosed with one of the critical illnesses covered by the policy, all for just £11.62 per month.
  • £211,500 of decreasing cover for a 29-year-old woman, to cover her mortgage. The premium is £14.03 per month, and had been increased by around £4 per month because of her history of depression.
  • £270,000 of decreasing cover for a 29-year-old woman, to cover her mortgage for the whole its 35-year term. The premium is £20.72 per month, and had been increased by around £10 per month because of her complex medical history
  • £195,000 of level cover for a 27-year-old woman, to cover her mortgage for the whole of its 30-year term. The premium is £18.68 per month, and had been increased by around £12 per month because of her epilepsy
  • £260,000 of life cover for a 28-year-old woman, which provides enough to clear her mortgage in the event of death, plus an additional amount for her family. The policy also provides a level lump sum of £25,000 should her child be diagnosed with one of the critical illnesses covered by the policy, all for just £24.89 per month. This cost figure includes an increase of around £10 from the standard rate due to her multiple sclerosis and mental health issues

Perhaps the best reason for taking out life insurance, critical illness insurance or income protection insurance at an early stage in your adult life is that your premiums will be much cheaper than would be the case at an older age.

If you would like to find out more, then contact Moneysworth today to see how we can help.

If people don’t take out life insurance, critical illness insurance or income protection insurance, then one of the reasons they might give is that they are prepared to take the risk and so they do not take steps to minimise the financial consequences of dying or becoming ill.

The problem with this approach is that, by not looking at appropriate insurances, you are potentially exposing your loved ones to the risk as well. A recent study by insurer LV= found that the average UK worker’s income supports as many as three people – so think about whether your spouse, partner and dependants could manage if your income was taken away suddenly.

The same study also exposed the low levels of savings held by the UK population, with 40% of workers not having an emergency fund of the recommended three months’ worth of average expenditure. This means that large numbers of people cannot rely on their savings to replace a wage earner’s income should the worst happen.

Life insurance can provide sufficient funds to replace the income of a family breadwinner should they pass away. It’s also possible to add critical illness cover to the policy, so that the same sum is paid out should you contract a serious illness.

Income protection policies can be set up to pay a significant proportion of your income, should you be unable to work due to accident or sickness.Moneysworth are experts in arranging lifecritical illness and income protection insurance. We are a whole-of-market specialist protection broker and we can search the entire marketplace to find the most suitable product and provider for your individual circumstances. Contact us today to find out more.

One of the main reasons why people might not take out the life insurance and other protection they require is that they think it would be too costly. 

In 2017, insurer Sun Life asked people to estimate the likely premium for £100,000 of life cover, and the average estimate turned out to be almost five times the correct figure!

Other studies have suggested that many people believe Covid-19 has driven a significant hike in premiums, but again, this is not the case. With the Covid threat having diminished, and death rates now down around the historic average, there is no reason for the insurers, who operate in a very competitive market, to charge any more than they need to.

These two recent cases illustrate how we can arrange competitive life cover for our clients:

  • 43-year-old woman who took out an income protection policy with a monthly benefit of £2,000. The plan also had a four-week deferred period, with the benefit payable for a maximum period of two years, payable should she be unable to work due to injury or illness before the age of 68. The monthly premium was £38.81. This premium could be achieved despite the client being HIV positive and having a recent episode of anxiety.
  • 29-year-old man who took out £260,000 of level life cover over 32 years, for just £11.62 per month.

Moneysworth can search the entire marketplace for the most suitable product and provider for your individual circumstances. We advise on and arrange life insurance, critical illness and income protection insurance and particularly specialise in finding cover for clients with complex individual circumstances, such as those with medical conditions, or who reside outside of the UK. Contact us today to find out more.

On International Women’s Day, Moneysworth would like to take this opportunity to thank all of the fantastic women who work in the UK financial services industry, especially the women that work for the insurance providers we use and for the firms that have introduced business to us in the past. 

We would also like to thank the women who work in Moneysworth’s great team, and to acknowledge the massive contribution they have made towards ensuring we won the Platinum Service Award and the two Best Small Protection Intermediary Awards we scooped during the last six months.

In an industry where sadly only 16% of investment advisers and 26% of mortgage and protection advisers are women, we are proud to say that we have a higher proportion of female advisers than these industry averages. A female member of our team was the consultant who advised or arranged 50% of the policies we have organised in 2024 to date.

The Platinum award is based on customer feedback submitted via Feefo, where recent complimentary feedback for our female employees includes:

“Excellent Service. Professional, Helpful, Personal service. From my initial enquiry, Joanne provided reasonable options. She cheerfully and promptly answered all my queries – even though some unusual circumstances meant this process and the medical took months. When the final premium was increased, I asked that she review and she appealed to the Insurer and the premium was revised to the original. Highly commended also to Gemma – always professional and helpful. A relief to deal with real people; rather than the ubiquitous automated system. I am pleasantly surprised by such tenacity and service and will contact Joanne for any future insurance requirements.”

“Fantastic service. First contacted Moneysworth in 2022 to arrange life insurance with an underlying heart condition, after I’d been declined by a major provider. They were really informative, and talked through all the options available to best suit my family. They were then incredibly patient and professional when an unexpected health issue changed my circumstance. When I got back in touch in late 2023, they worked through several providers and managed to secure cover for me. A huge weight off my and my partner’s mind. Thanks so much to Jo and the wider team for persevering and all the help and advice.”

“Lyndsay and Gemma were very, very helpful. All informations were provided, they always kept me updated.”

“My experience with Moneysworth was exceptionally good. The staff were helpful and very professional. They managed to find the best deal for the Life insurance I requested for. The communication was good and they kept me updated from start till end. They found me a Life insurance that’s suitable for me and my family…Thank you Gemma and Lyndsay for all your help.”