Business protection fact fi nd – limited companies 3
Financials
Year Year Year
Professional advisers
Name and address Contact name and phone Has the adviser discussed
business protection? Turnover
Gross profi t
Net profi t before tax
Profi t after tax
Dividend
No. of employees
Value of the business Who calculated value?
Year end date
Articles and agreements
What are the share succession provisions in the articles/shareholder agreement on death or long-term sickness?
Are these in line with owners’ wishes?
Is there a share purchase agreement? Y/N If so, is it fixed or market value?
Is it an option or binding agreement?
Accountants
Solicitors
Bank
What is the relationship with the bank? Financials for the last 3 years
Why is this person key to the business? What do they do?
Is there a successor in place?
What effect would their loss have on the business? How much gross profi t do they contribute?
How long would it take to recover?
What replacement costs would there be? Position
Are there any director
loans in place? £ £ £ £
Ownership and key personnel
Life 1 Life 2 Life 3 Life 4
Title First name Second name Sex Date of birth Smoker Y/N Telephone Email PAYE earnings £ £ £ £ Dividends £ £ £ £ Benefi ts in kind £ £ £ £ Total remuneration £ £ £ £
Business protection fact fi nd – limited companies 5
Ownership and key personnel
continued
What will happen to the share on death?
How will the remaining owners be able to buy these shares?
How will the estate get fair market value?
Are there any other business interests? Share held
% % % %
Not-voting shares
% % % %
Life 1 Life 2 Life 3 Life 4
Existing covers
Life 1 Life 2 Life 3 Life 4
Key person cover
Existing cover type
Provider
Term
Sum assured £ £ £ £
Premium £ £ £ £
Who owns the policy?
Under a business trust? Who will the benefi t be paid to?
Ownership cover
Existing cover type
Provider
Term
Sum assured £ £ £ £
Premium £ £ £ £
Who owns the policy?
Under a business trust? Who will the benefi t be paid to?
Is cover appropriate?
Existing covers
continued
Life 1 Life 2 Life 3 Life 4
Loan cover
Existing cover type
Provider
Term
Sum assured £ £ £ £
Premium £ £ £ £
Who owns the policy?
Under a business trust? Who will the benefi t be paid to?
Client signature
Adviser signature
signature date
signature date
Note: figur
es subject to acceptance following financial underwriting.
The key people in your business
Business name
Name
Name
Name
Name
Reasons for cover
Amount of cover
Bank loans (A)
Pr
oportion of bank loans attributable to each key person
or Amount of loan wher
e full cover is needed on each key person
(Maximum £750k Life Cover and £500k Critical Illness Cover) Proportion of over
draft attributable to each key person
Owner
’s loans (B)
Dir
ector or partner loan/curr
ent accounts (in full)
Contribution to pr
ofit (C)
Contribution of each key person to the gr
oss pr
ofit of the
business multiplied by years to r
ecovery (maximum 2 years)
or Contribution of each key person to the net pr
ofit of the business
multiplied by years to r
ecovery (maximum 5 years)
Replacement costs (D)
Agency fees Salary/pensions/bonus Car lease Other – training/r
elocation, etc.
Other costs (E)
Give details over the page. Insert figur
es her
e
Total Key Person Cover
A + B + C + D + E
Death in service (relevant life policy)
Multiple of salary to pr
oduce lump sum for dependants
Value of business shar
e
Accountant’
s market value
or Owner
’s estimated value of assets and goodwill
Business pr
ot
ec
oup which consists of The Royal London Mutual Insurance Society Ltd and its subsidiaries. The Royal London Mutual Insurance Society Ltd pr
ovides life and pension pr
oducts, is a member of the Association of British Insur
ers, is authorised and r
egulated
egister
ed in England and W
ales No.99064. The r
egister
ed office is 55 Gracechur
ch Str
eet, London, EC3V 0RL. Bright Gr
ey is a member of IF
A Pr
omotion Ltd.
