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Business Protection Customer Seminar

Business Protection Customer Seminar.

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Business Protection Customer Seminar

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  1. Business Protection Customer Seminar Zurich accepts no responsibility for ensuring that this presentation meets the requirements of financial services legislation covering financial promotions. You will need to satisfy yourself that the content meets the relevant requirements.The design of this presentation has been left blank so you can add your own branding to the slides.

  2. Protecting your business

  3. Protecting your business What do you protect? ü ü ü ? ? Property Profits Liability Vehicles Ownership Today we will look at why and how you should protect the profits and ownership of your company

  4. Think about as we go through today • Your current profit levels • Your home/work balance • How the situations we discuss could change this balance • How these changes would affect your lifestyle and financial security Work Home

  5. Dave is the top salesman in the company. He is responsible for bringing in 50% of the company’s revenue. He holds valuable relationships with all of the company’s customers. Meet Dave

  6. What would be the impact of Dave dying? • Profits drop as not so many sales are made • Relationships with key customers suffer and they start looking elsewhere to buy • Dave’s replacement’s salary is higher as they had to be brought in at short notice • Recovery is slow while Dave’s replacement gets up to speed • The bank stops the overdraft facility because profits are falling • Management team has to spend more time in the business

  7. What if a key person in your business died? • How many Daves do you have in your business? • Who could you really not do without? • If they were not at work, how would your business suffer? • What would happen to the balance in your life? Work Home

  8. The solution The Company takes life cover out on Dave…and pays for it When Dave died, the profits dropped Life cover paid out on Dave’s death and replaced the lost profit Profit £

  9. Meet the board • Sue, Bill and Jo own an IT consultancy company • Each has invested significant time and money in the business and the value of their share in it is continuing to grow • If one of them were to die, the others could carry on, although at a reduced turnover • Their spouses/partners have no interest in the business and no skills to contribute to the business

  10. What was the impact when Sue died? • Sue’s partner wanted to sell Sue’s share of the business – and as neither Bill or Jo could afford to buy them out, their share could offered to a third party (if one could be found). • Sue’s partner started attending board meetings and was pushing for higher dividends to be paid out to increase his income • At the same time as dealing with Sue’s partner Bill and Jo had to put more time into the business to cover the work Sue would have done • Plus, many of the same issues we saw with Dave

  11. What if you or one of your co-business owners died? • How many of your co-owners’ partners would need money rather than the share of the business? • Could you afford to buy their share of the business? • Would your co-owners’ partners want to be part of the business? Do you want them to be? • What would happen to the balance in your, or your partner’s, life? Work Home

  12. TRUSTEES PAY CASH TO BILL & JO SHARES LIFE COVER PAID TO TRUSTEES SUE’S PARTNER ASKS BILL & JO TO BUY SUE’S SHARE OR BILL & JO ASK SUE’S PARTNER TO SELL THROUGH A SUITABLE AGREEMENT SUE’S PARTNER BILL & JO BUY SUE’S SHARE The solution SUE SUE DIES LIFE COVER ON SUE IN TRUST TO BILL & JO

  13. Why is it needed? - Likelihood of partner / director dying before 65 - Number of partners / directors Average age of partner / director Source: based on Office of National Statistics Interim Life Tables for UK Males between 2005 and 2007

  14. Do you want to do something about it? • Please feel free to talk to me after the session • I will call you to discuss your specific requirements over the next few days This presentation is based on [your firm name] interpretation of the law and HM Revenue & Customs practice as at [1 January 2010]. While this interpretation is believed to be correct, [your firm name] can give no guarantee in this respect.

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