Have you your own business? Are you involved in a family business or a Director in a SMW? Have you ever considered the impact of loss of a director/ partner through death, or ill health? It can potentially have very negative consequences on a business. Unfortunately, this is a huge issue for business owners, as research has shown that over 65% of Irish companies and partnerships currently have no business protection.

As a business owner, you most likely protect your property, vehicles and equipment with various forms of insurance, but have you considered what would happen to your business if you died prematurely, what would the financial impart be on your family and your business?

Business protection is an effective solution that can ensure there is a capital lump sum available to the deceased business partners share. Having the means to buy a deceased partners share allows the remaining partners to retain full control of the running of the business.

There are a range of business protection plans available to help business help survive the death or serious illness of someone that would result in a financial loss for the business. The death of a director, shareholder or partner may bring distress and grief to any organisation. The deceased’s family may be unfamiliar with the business, and may have cash-flow problems after losing his/her income. Business Insurance makes it possible for the directors to buy the shares from the family or next-of- kin, which could be the best option for all concerned.
Below is a summary of the various types of plans available:

Co-director Insurance can bring security and stability to a company’s directors. In the event of the death of one of the directors, it will allow the surviving directors to buy the deceased’s shares from their next-of- kin if these unfortunate events occur.
Partnership insurance – This is a specific kind of insurance policy that protects the financial security of a business partnership by compensating a deceased partner’s estate for their share of the partnership.
Key Person cover provides protection against the loss of an extremely valued employee of high financial or strategic importance to a business.

The key to finding the most appropriate plan for your business is getting the right advice. If you are concerned about protecting the future of your business, feel free to contact OneLife for advice on this matter.

Withdraw up to 30% from AVC and PRSA AVC funds

Are you in an occupational pension scheme? Have you contributed to an AVC (Additional Voluntary Contribution) plan?

There is good news as there is a once off option to withdraw up to 30% of the Value of Additional Voluntary Contributions (AVCs) inc PRSA/ AVCs, however the deadline is approaching.

Individuals who have AVCs or PRSA/ AVCs will be entitled to access up to 30% of their value on a once off basis at any time within 3 years of the date of the passing of the Finance Act 2013. Effectively this means that the option will be available until 26th March 2016. The option applies to AVCs only (including PRSA/ AVCs).

The amount drawn down will be taxed at the member’s marginal rate of income tax. No Universal Social Charge (USC) or PRSI deduction will be made in respect of the AVC drawdown. The administrator will automatically deduct income tax at your marginal rate.

For more information on how to drawdown your AVCs or if you wish obtain the relevant forms for this drawdown contact us OneLife

Most people, if asked, haven’t a clue what income protection really is. It’s actually fairly simple to explain:

Income protection protects your salary

If you become injured or ill and can’t work, income protection pays you a portion of your salary until you can return to work.

How long could you last without a salary?

We found that most people couldn’t make it for a month before financial hardship would set in. So, it’s easy to see how important income protection is. We are good at making excuses not to join. In reality, it is very important to cover one of your most important assets – your salary

Excuse 1: “I’m young and healthy. It’ll never happen to me.”

Truth: You actually have a 40% chance of suffering a disability or illness that keeps you out of work for 60 days or more at some point during your career. So you could be one of the lucky 6 in 10 but what if you’re not?

Excuse 2: “I could survive on social welfare benefits.”

Truth: Could you survive on social welfare? How much are your mortgage repayments alone? What other outgoings would you have to stop paying?

Excuse 3: “I think I have some sort of cover through work.”

Truth: Some employers have cover for their employees but it’s more than likely you don’t. Most private employers don’t offer long-term income protection. If you’re a public servant you would have seen your sick pay benefits slashed this year.

The bottom line is this: If you a full time employee, self employed or a company director, and if your family relies on the money you bring home every month, you need income protection.

What you need to do is:

Find out what income protection coverage and sick pay you have at work (short-term, long-term, both or none at all). Your HR department can help you out with that. Ask how much you get paid and for how long.
If you have an income protection plan already in place, it is no harm to review your existing cover as premiums have fallen in recent years.
Put an income protection policy in place to make sure you’re taken care of if something were to happen to you. Different insurers have different benefits and premiums, so it is worthwhile to find the best plan for you. We can help you find a policy that suits you and your budget.

Remember you get tax relief at up to 40% (your marginal rate) on your premiums.

If you would need a hand or have any questions, simply contact us to discuss your requirements.

Protecting your business