Protection Guru has worked with Royal London to create a concise objective analysis of their product range.
Royal London in their own words
Most businesses make sure their assets are covered against the effects of fire or theft. But what about that other core asset – people? The absence of a partner, shareholder or key employee could damage a business in several ways. In a moment it could lose key skills, experience and contacts.
With our Business Menu Plan you have the flexibility to mix and match a range of covers that suit your client’s business needs. You can cover business loans or protect against the loss of a key person, partner, member or shareholding director. We also offer relevant life plans and various trust solutions.
Have a look at our sales aid (click here) to see how the Business Menu Plan can help protect a business against many damaging outcomes.
Solutions for all business protection needs
Key Person Protection
A ‘key person’ is an employee whose loss would have a significant impact on the profits of a business. Having key person protection in place provides a financial safety net that can cover this loss as well as any replacement costs in the event of that key person suffering a critical illness or dying.
Partnership or Shareholder Protection
When a shareholder / business partner dies or retires following a critical illness, the remaining owners will need to work out how to retain control of their business and how they assign fair value. With the right cover in place the remaining owners will be able to purchase the retiring or deceased owner’s share of the business.
When a business borrows money, it makes sense that it has some form of cover in place to repay all, or most of that loan should one of the business owners unexpectedly die or suffer a critical illness – having loan protection in place helps a business to achieve this.
Relevant Life Plan
RLP is an alternative, tax-efficient, way for an employer to set-up life cover for an employee, without using a registered death in service group life scheme. With our RLP the client has the ability to add or remove trustees rather than the company or trustees having the power to do this. The plan is also portable so if the employee leaves or retures from the company, the plan can be converted to a personal protection plan.
Trusts & Tax
Trust and tax considerations need to be assessed when setting up protection for a business. A business trust is designed to ensure benefits are paid to surviving or continuing shareholders without giving rise to inheritance tax. And a cross option agreement ensures that options are put in place for the future ownership of the business as well as agreeing how any interest in the business is valued..
The Benefits of Royal London’s Business Menu Plan
Where medical evidence is required, obtaining a medical or GPR can mean lengthy delays to getting cover in place. In such scenarios, Royal London will enable business protection clients to put their policy in force (with premiums being paid) immediately with an underwriting decision based on the information provided within the application. They will then obtain the relevant medical evidence and once received revise the terms of the plan if required.
max sum assured
time frame to obtain medical evidence
No additional standard exclusions
Number of cases fully underwritten within 6 months in 2019
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Helping Hand for business
Losing a key member of staff can have practical and emotional consequences. Royal London’s Helping Hand for Businesses not only provides all the support advisers are accustomed to from personal protection, but also business specific support.
Your clients will have access to this service from the day their Business Menu Plan starts and the person covered by the plan, their partner and their children, will have access to a dedicated nurse who can give tailored and personal support for as long as it’s needed.
Helping hand for businesses can help them in several ways with no additional costs for using any of the services.
support for the life assured
- A dedicated nurse to help support and refer the client to suitable services
- Second Medical Opinions
- Specialist support to help cope with cancer
- Cardiac rehabilitation for heart attacks
- Speech and language therapy
- Counselling for a wide range of issues
- Practical help at home
- Support for carers
- Home visit from healthcare specialists
- Living aids and mobility equipment
- Legal guidance
- Fitness and nutritional support
In partnership with Identify Solutions, Royal London provide a support to help keeping businesses running when a key person is seriously ill and unable to work.
Identify Solutions will contact recruitment agencies on your client’s behalf and will provide them with a list of suitable candidates within 48 hours. If an employee can’t return to work, they’ll help your client to write job specifications and prepare paperwork for recruitment agencies so they can find a permanent replacement.
The Helping Hand service also provides a legal helpline for businesses that can help them with all aspects of employment law.
If their employee is absent for a period of time because they’re seriously ill, they can get help to understand their position. They can also get advice on things like shareholder options, or succession planning in the event of the death of a key member of staff. The person covered by the plan, and their partner and children, can also use the legal helpline to find out about things like wills, or probate.
2019 Business Protection Claims
Most common occupations
Percentage of business protection claims
Sign Writer (not working at heights)
A free cover claim story
Areas for improvement
- Royal London do not offer access to virtual GP services
- Could look at offering a simple low cost critical illness plan
Protection Guru has worked with Royal London to create a concise objective analysis of their product range. Royal London have had input to the design of this page and contributed to the cost of the construction and maintenance, however Protection Guru have maintained editorial control over the content to ensure objectivity.