Life Assurance

Life Assurance can protect you or your family’s lifestyle in the event of untimely death or Illness. You can use it on a personal level for your family or to protect business interests.
PersonalBusiness

Personal

Do I need Life Cover?
If so – How much and for how long?
What’s the best policy for me?

Life Assurance

Life Assurance is a tax free payment of a sum of money in the event that an individual passes away.  It should cover the loss of salary or the household or the cost of replacing the work that would have contributed to it by a home maker.

Serious Illness

A Serious Illness policy is a tax free payment of a sum of money in the event that an individual suffers from a specified (by the policy) illness.  It is designed to cover temporary loss of salary, medical care, home conversions or any financial cost incurred but the unexpected Illness.

Income Protection

A Serious Illness policy is a tax free payment of a sum of money in the event that an individual suffers from a specified (by the policy) illness.  It is designed to cover temporary loss of salary, medical care, home conversions or any financial cost incurred but the unexpected Illness.

Life Assurance is a tax free payment of a sum of money in the event that an individual passes away or if Serious Illness is included, then a payment in the event that one of the policy holders unfortunately gets an illness specified by the policy.  You can get a standalone Serious Illness policies.

To illustrate – let’s take a nuclear family. Parents and 2 children, say 5 & 3 years of age.

One parent works and is the bread winner the other runs of the household.

The Risks – either the Bread Winner dies leaving no, or a reduced income to the household.

Or, the parent running the home dies leaving a lot of services to that household that need to be replaced.

Either the Bread Winner parent stops working to care for the children leaving that exposure to loss of income or, the services need to be bought in. Of course, we can always and often do depend on other family members but you have an opportunity before the situation occurs to ‘count the cost’ of that sacrifice, and what if means for those individuals who have to step into the role.

The level of cover required depends on either the income that needs to be replaced or level of expenditure it would cost to have covered the additional family support + repayment of debts like a mortgage. For a period of time, with our nuclear family, perhaps 20 years until both children have passed through college, would be the minimum required.

Life Assurance is not just for families – it exists for anybody who could have a financial exposure to another individual dying or suffering from an Illness.  For example, a special type of Life Assurance Policy can be used to cover Inheritance Tax bills that will arise on the death and the passing on of assets.

A Financial Broker like Servatus will help you identify your exposures and the amount of a lump sum you would need to replace the missing income or services.  Then, find you the best policy available in the market that suits your needs.

For Business

Is my Business exposed?
What options do I have?
How do I implement a solution?

Share Holder Protection

A Life Assurance policy and commitment to ensure that surviving shareholders retain control of their company.  While ensuring the family members of the deceased shareholder receive the value of the (asset) company shareholding.

Keyman Cover

A Life Assurance policy that protects your business if one of your key employees or shareholders becomes seriously ill or dies suddenly?

Income Protection

Income Protection policies can replace up to 75% of your salary in the event you cannot work due to illness.  These are designed to pay you up to retirement age to cover your Human Capital or in other words the potential for future salary that an Illness or Accident took from you.

How would your business survive if: 

  • One of your key employees or shareholders became seriously ill or died suddenly?
  • Your business partner died?
    • What would happen to their share of the business?
    • How would you feel about a shareholder’s family joining your business if he / she died suddenly?
  • You died?
    • What would happen to your share of the business?
    • Are your spouse or children in a position to take your place in the business?
    • How will your family survive financially?

It happens more often than you think.

What’s the solution? Many problems can arise for a business when a partner or key employee is out of the picture due to death or serious illness. Some of these problems could be alleviated with adequate financial planning to provide the funds to allow options and choices to be made by all parties. Arranging adequate business protection insurance is the only way to ensure that the necessary funds will end up in the right hands at the right time, in a cost efficient manner, to ensure the continuity and the survival of the business.

Keyperson Cover This allows a limited company to plan for the potential financial loss that it would suffer on the death or serious illness of a key employee. For example, will any loans to the business have to be repaid on the death of a specific individual?

Personal Shareholder Protection This allows the shareholders of a limited company to provide funds to purchase the share of a deceased shareholder from their personal representatives. The life assurance contracts are taken out by the shareholders personally. This ensures the surviving shareholders retain control of their business.

Corporate Shareholder Protection This is an arrangement whereby the company agrees with each shareholder to buy back his / her shares from his / her personal representatives on death, with the insurance cost being borne by the company. This ensures security for the company, and peace of mind for the family / dependants of the deceased.

Gift Or Inheritance Tax Planning This allows you to plan in advance for any tax liability which could arise on the transfer of a business, thus ensuring the business won’t have to be sold off to pay the tax debts. Your advisor can help you, and your business, to plan for the future. Whether it is succession planning, providing financial security for dependants, or ensuring the survival and continuity of your business in the event of the death of a shareholder or key employee, we can offer solutions to meet your needs.

If you manage your own business, either solely or with business partners, there are important questions that need to be considered as part of normal business planning

  • Will I be able to pass my business on to my children intact without it being ravaged by tax?
  • How will my family survive financially in the event of my sudden death?
  • How would the business survive in the event of my sudden death or the death of a partner?
  • What would happen to my income in the event of a long-term absence from work due to illness?

If this is a discussion you must have, then call us.

Get In Touch

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SERVATUS LTD


Dublin Office

Servatus Ltd
36 Millennium Business Park
Cappagh Road
Dublin 11
Phone : +353 (0)1 5547310
Email: info@servatus.ie


Galway Office

Servatus Ltd
Unit 22
Claregalway Corporate Park
Co. Galway
Phone : +353 (0)91 421900
Email: info@servatus.ie