Protection - Business Protection
A business protection plan is a ‘term assurance plan’ available to employers to provide an individual death in service benefit for an employee.
A business protection plan is designed to pay a lump sum if the individual dies or is diagnosed with a terminal illness whilst employed during that policy term.
Business protection plans are only available where there is an employer / employee relationship. Therefore, they are not open for: sole traders, equity partners of a partnership or equity members of a limited liability partnership.
A business Protection plan is there for those:
– Looking to provide ‘death in service’ benefit but with too few employees to set up a group scheme.
– Directors wishing to provide their own individual ‘death in service’ benefit without taking out a scheme on all employees.
– High earning individuals, such as a director, where they don’t want ‘death in service’ to form part of their lifestyle allowance.