illness protection, a lump sum is paid on death or after diagnosis of one of the specified illness.

For business loan protection, a lump sum is also paid. However, this reduces to nil over the course of the policy.

What can benefits be used for?
Funds provided by business protection insurance policies can be used to:

•fund a permanent or temporary replacement
•tide the business over a period of reduced activity
•contribute to medical care to speed recovery
•repay an outstanding loan

Key Person Insurance
Key person protection can cover one or two nominated individuals, who can be a partner or an employee. If they die or are diagnosed with a terminal or critical illness, the policy will pay a lump sum either on death or shortly after the diagnosis of a disease. Some policies will pay a regular income if they are absent from work for a long time.

Unforeseen Events
If a partner in a business dies, there may be other problems. Apart from their loss to everyday business activity, there may be imperative reasons to buy out their shareholding so that it does not pass to outside investors who do not share the vision of the company’s future. Such unforeseen events can lead to crises, reduced revenues and even, in some cases, business collapse.

Protection for the Self Employed
With no employer to turn to if ill health prevents them from working, the self employed have a greater need for protection than most.

If you’re self employed, being your own boss has many perks. You are in complete control of your destiny, the hours you work and even when the weekend starts. But not having an employer to pick up the pieces can have its disadvantages, particularly if unforeseen events such as ill health stop you from being able to work.

With work and being fully able to work so vital to your lifestyle you haven’t got time to be ill and, if you are ill, you want to be treated as fast as possible. Therefore self provision against this very real threat to your financial welfare is a must and a very prudent business decision.

Article Source: http://www.articles-galore.com

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