Matt Johnson owns a graphic design company that employs 15 people. He has decided to purchase larger premises and the profits from the business easily cover the repayments. However, Matt is concerned about what would happen to the business if his key sales consultant, Paul, 35, was off work long-term due to injury or ill health. Matt has recently employed two more sales consultants, but wants to know how he could protect the business if Paul was unable to work. What options should he consider?
Iain Henshall, Towry Law Financial Services A number of solutions are available to address Matt's concerns. Statistically, a third of all people will contract cancer in their lifetime and one in eight people in the UK have been diagnosed with disease of the heart or circulatory system. Paul is key to the profitability of the business and his contribution to profit should be protected through insurance. Cover for five years would be suitable as this should allow the two new sales consultants to become established, reducing the risk in the future. To cover Paul, a 35-year old male, for £2...
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