Business Owners

The Background

Two business owner directors (50:50 owners). Both male mid 40's - married with young children

The Issues:

  • Business solid and growing quite young
  • Taking modest salaries for the time being
  • Only small pension funding but intend to fund more aggressively in future as business grows
  • Big concern now - Protection issues 
    - Life cover - only mortgage cover in place - no 'family protection' in place
    - No 'income protection' if unable to work due to illness or injury
    - Worried what would happen shareholding if either died suddenly
  • As only taking modest salaries, funding these covers personally is expensive


The Solutions:

  • Set up the following covers


1. Company Directors Life insurance on both for €250k each
Cost - c€55/mth - paid by company.

2. 'Keyman Serious Illness cover for €75,000 on each.
Cost - c€75/mth - paid for by the company.

3. Pension Term Life assurance as 'Family protection' on both for €500k to age 60.
Cost €65/mth for each, paid by company as a trading expense (12.5% corpo tax relief) but no BIK paid by directors.

4. Income protection (PHI) on each director for €36,000 (€3,000/mth) payable after 26 weeks deferred period, to age 60.
Cost €66/mth for each, paid by company as a trading expense (12.5% corpo tax relief) but no BIK paid by directors

Will review all in 3 to 5 years depending on how business is going