At Howard Wright Financial Planning, we help business owners navigate these choices, ensuring the right protection is in place for both the business and its stakeholders.
What is Term Assurance?
Term assurance provides life cover for a specified period, such as 10, 15, or 20 years. If the insured person dies within the policy term, a lump sum is paid out to the nominated beneficiary.
Key features of term assurance:
- Fixed coverage period
- Generally lower premiums than whole of life insurance
- Ideal for temporary obligations such as business loans or funding a share buyout
- Can be tailored to match the length of a business succession plan
Term assurance is a cost-effective way to ensure your business is protected during critical periods, such as paying off debts or facilitating a smooth transition of ownership.
What is Whole of Life Assurance?
Whole of life assurance provides coverage for the insured person’s entire life, paying a lump sum whenever death occurs, provided premiums are maintained.
Key features of whole of life assurance:
- Lifetime coverage
- Higher premiums compared to term assurance
- Can be used to fund long-term business obligations, estate planning, or ongoing shareholder agreements
- Provides certainty that funds will be available whenever needed
Whole of life policies are particularly useful for businesses with permanent financial commitments or for planning long-term succession arrangements.
Which Policy is Right for Your Business?
The choice between term and whole of life assurance depends on your business needs, financial obligations, and long-term goals:
- Term Assurance: Best for temporary coverage like loans, share buyouts, or succession plan timelines.
- Whole of Life Assurance: Ideal for long-term commitments, estate planning, or permanent shareholder agreements.
A Chartered Financial Planner can assess your business structure, financial obligations, and objectives to recommend the most suitable policy.
Take Control of Your Business’s Future
Life assurance is not a one-size-fits-all solution. At Howard Wright, we tailor protection strategies to your business’s unique needs, helping safeguard your company, its owners, and your family.
Don’t just take our word for it, read our clients stories here and our five star reviews here.
Contact our team of Chartered Financial Advisers on 0345 688 4939 or use our 20-second enquiry form to discuss how we can help you choose the right life assurance policy to protect your business and support your succession planning. We look forward to hearing from you and showing how our award-winning team can secure your business’s future.
Disclaimer: The information provided in this blog is for general guidance only and does not constitute financial advice. We recommend seeking personalised advice from a qualified financial planner. Past performance is not indicative of future results. The value of investments can go down as well as up, and you may not get back the amount originally invested.
By choosing Howard Wright, you’re not just arranging life assurance; you’re investing in your business’s stability, continuity, and peace of mind. Contact us today to get started.