Why Your Business Needs Insurance Protection

For most companies, whether they are small to medium sized businesses or large corporations, insurance protection is a vital component of their operations and financial planning. Depending on your product or services, your business operations can be severely affected in the event of an accident, a natural disaster, the death of a senior figure, or other unforeseen circumstances.

Types of Business Insurance Protection

The complicated nature of business insurance can sometimes put off smaller businesses, but the law requires all businesses to have certain types of insurance. Below are some of the types of insurance a business may need to include in their cover, not only to meet legal requirements, but as a safety net to protect the company:

  • Business Protection Insurance

Although a lesser-known part of insuring a business, business protection insurance is nonetheless one that most companies should consider, especially small firms. This type of insurance provides cover to help your business continue trading should a company owner or other key member get seriously ill or pass away. Business protection insurance also covers crucial aspects of a business such as shareholders and loan protection.

  • Liability Insurance

Commonly referred to as ‘employers’ liability insurance, this type of cover is required by law if your business employs staff. Liability insurance provides cover should one of your employees get injured, suffer illness, or death and it is deemed to be a result of their work. Therefore, in addition to being a legal requirement, liability insurance also makes perfect business sense.

  • Public Liability

As above, your business activities may be carried out around members of the public or private property, so cover is advisable. While not legally required, public liability insurance is essential to provide cover for unforeseen incidents that may involve the public and is also a requirement from most public sector clients looking to do business with any company.

  • Vehicle Insurance

Just like we insure our private vehicles, businesses may also need to take out motor insurance that provides cover specifically for business use. The same applies even if employees use their own private cars and have their own insurance policies. If any vehicles are used for business work – no matter how minimal it is – then it is the company’s responsibility to ensure the right cover is in place.

With the added cost that comes from insurance premiums, some business owners may look to forego taking out cover for their company, especially as the prospect of events such as natural disasters affecting them may seem highly unlikely. However, it’s important to remember that any number of factors can come into play in affecting your trade, profitability, and continuation. For example, the impact that fire damage, burglary, or flooding can have on operations can end up being very costly, not to mention being a time consuming inconvenience.

Businesses, both large and small, should therefore get advice on the type of insurance required to provide adequate cover to ensure business continuity and security. In conclusion, your business needs insurance protection not only as a means to get financial cover in the event of any unplanned events, but getting adequate cover is also a great way to enforce continuity planning in the organisation that ensures the company’s stability and longevity.

The Advantages of Over 50’s Life Insurance

For most people who take out life insurance policies, the focus is on help with funeral costs as well as the future financial security of the loved ones who remain after an insured person passes away. The same applies to over 50’s life insurance; these types of policies are designed to provide a lump sum to loved ones after the policy holders death, so even at this later stage in life there are still many advantages to getting life cover.

What are the advantages of over 50’s life insurance?

Guaranteed Acceptance

Most over 50’s life insurance policies cover those between the age of 50 to 80 or even sometimes 85, depending on the policy, and the biggest advantage of this type of cover is that acceptance is always guaranteed. Typically, there are also no health questionnaires to fill out and answer, neither are there any medical checks to undergo.

Tax Free Pay-outs

In the event of the death of the policy holder, an over 50’s life insurance plan will pay out a tax free lump sum to his/her loved ones which may help with funeral costs, outstanding medical expenses, as well as the regular bills they were responsible for. In addition to death benefits being exempt for tax purposes, in certain cases, one life insurance policy can also be exchanged for another without incurring any taxation. With some policies, it is advisable to write the policy ‘in trust’ to avoid your loved ones being liable to pay inheritance tax.

Flexible Terms

Most life insurance policy providers offer flexible terms that can be adjusted to suit the requirements of the policyholder. Depending on your chosen provider, you may also be able to adjust the amount your policy will pay out as well as reduce or increase your premiums to suit your finances.

Financial Planning

With the ability to see an estimation of the pay out your loved ones can expect to receive, an over 50’s life insurance policy can also be used as a tool to help with your financial planning for the future. In addition to healthcare and funeral costs, other outstanding commitments such as mortgages can also be considered when deciding the level of your premiums and resultant pay out.

Simplicity and Affordability

With no health checks to undertake and various options on the amount you pay as your premium, over 50’s life insurance offers a simple and affordable way to provide a form of financial security should you pass away. Insurers will normally consider your age, whether you are a smoker or not, and the amount you’re planning to pay in, but as mentioned above, most applicants will be accepted irrespective of these factors.

Another advantage of over 50’s life insurance is that if you are lucky enough to live up to 90 years of age, you will still be covered but may not have to continue paying your premiums depending on your policy. In conclusion, if you are over 50 and do not currently have life insurance, it is not too late to get coverage. Most reputable providers will still be able to provide you with a policy and, in turn, provide peace of mind and financial certainty for your loved ones.

 

Common Life Insurance Mistakes & How To Avoid Them

 

When it comes to investing in home or car insurance, it’s only natural that you’ll want to do the adequate research that’s involved to get the best company and the best quote. Taking out a life insurance policy should be no different. After all, it’s such a major long-term commitment that choosing the right company and policy is something that you must get right the first time, as making mistakes could have detrimental effects on the ones that you’re try to protect by taking out the policy.

As with most things that involve contracts and deliberation, it’s easy to make mistakes when taking out such a policy. We’re about to delve into this a little further by revealing five of the most common mistakes that people make when getting life insurance:

1.Choosing the wrong policy coverage

When it comes to choosing a life insurance policy, a lot of people underestimate the amount that they will need to properly cover themselves and their family. Consulting with a financial advisor is one of the first steps that you should take when deciding on which policy and how much coverage to take out as they will be able to help you calculate the amount of money that will be needed to help look after your dependents.

2.Forgetting to re-evaluate the policy regularly

A lot of people that have an insurance policy would have sat down with a financial planner and evaluated their insurance needs before signing the contract and although this is definitely necessary, it’s not enough. Just have a think about this for a moment – if you purchased a policy 15 or 20 years ago your benefits might be less than what you and your family require today. As a good practice, it’s always a smart idea to sit down every few months or at least yearly and reassess your policy from start to finish.

3.Choosing a policy based on the premiums alone

When it comes to taking out a life insurance policy for the first time don’t pay attention to the price alone. Be sure to look at the company’s strengths and benefits and ask around for reviews and recommendations both online and from people you know regarding the company services. When comparing the insurance policy that a company offers always be sure to compare apples to apples and evaluate similar policies with other companies. Regardless of which company you choose and policy you take out, it’s always important to read the fine print.

4.Taking out a policy at the wrong time

Your age is extremely important, as it will determine a lot of what your policy will cover. One of the biggest mistakes that people make when choosing their coverage is taking out a policy at the wrong time. For example, providers usually up a person’s age so if you are six months away from being 30 years old when taking out a policy, an insurance company will take that information and give you a price as if you were already 30. Again, this is why it is important to shop around and do your research when it comes to getting the best quote and policy for you.

5.Relying on third party policies

While it’s common nowadays for companies to take out insurance policies for their staff, it’s always best to have your own independent insurance policy. A lot of third parties insurance, which you are covered for from your employer or workplace, doesn’t often include the full amount of coverage that you would expect it to. A lot of these policies also leave you locked in meaning that you’ll be unable to re-evaluate and alter them at a later date. Some policies are also known to expire in the event that you leave that company.

Investing in life insurance and finding a suitable policy is not something that should be rushed, and make sure that you do not fall victim to the five mistakes that are outlined above.