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Business Protection - Case Study

Business Protection Case Study

A six partner professional practice were looking to protect the business from loss of turnover should an important revenue generating colleague unexpectedly die. The business was also looking to be advised on the issue of succession planning against a backdrop of having practice partners of varying ages and different percentage shareholdings.

How did we help them with their Business Protection journey?

Key man insurance

The firm wanted to ensure that comprehensive protection was in place and it was established that cover to the value of £350,000 per partner was required, with all proceeds being paid to the practice.

Succession planning

In the event of a shareholding partner dying unexpectedly, the practice was looking to make a provision for the remaining partners to legally purchase the deceased partner’s share, with the proceeds paid into their estate for the benefit of beneficiaries free from Inheritance Tax. 

The solution was to arrange life assurance against each partner to cover their respective value within the partnership. The policy was written in trust for the other partners within the business. 
The firm also benefits from the flexibility within this type of provision. Should a partner voluntarily leave the business, any new partner can be covered under the same arrangement. If a new partner is added, there is only the need to arrange a single life policy to the overall arrangement. 

To learn more about how Panoramic Wealth Management can help you complete your Business Protection journey contact us now on 01892 559 555.