Many businesses put in place insurance to protect the value of their stock, the buildings and the motor vehicles. But what about the people that work in the business – that have key relationships with suppliers and customers, and years of knowledge.

We provide a range of business insurance options…

Debt protection

If a business owner suffers a severe disability or dies prematurely, the proceeds from a claim can provide you with the cash to repay all or a significant part of the debt.

For example, if as business, you have borrowed $1,000,000 to expand the distribution of your services, and one of the business partners dies prematurely or becomes disabled, the remaining partners will be left with all of the debt. Appropriate levels of insurance with the correct ownership structure protects the business, the business owners and their families.

Shareholder protection

If a business partner dies or suffers serious disablement, insurance can provide the funds for the remaining business partners to buy the shares from their partner or their estate.

How will this work?

It is really important that you have a buy/sell agreement in place that sets the rules as to what will happen if one of the partners is taken out. We would recommend that you get legal advice when setting up a buy/sell agreement.

Who owns the policies?

Generally the business partners will own the policy on their partners life and vice versa. It may however be prudent to have an independent trustee own the policies to ensure that the buy/sell agreement is honoured at the time the claim is paid.

Key Person

Who are the key people in your business?
How do you value their contribution to the business?
If they could not longer work in the business, what would be the impact on your cash flow?

We can assist you in determining what revenue a key person brings in to the business and what other costs would be associated with the loss of that key person – it may be recruitment costs – it may be the time it takes to get a new person up and running. An injection of cash at this time can cover these costs and reassure customers and creditors.

We are fortunate in New Zealand to have a public system that provides free health care.  We also have the Accident Compensation Corporation (ACC) which will pay for treatments if you have had an accident.

So why would you have private health insurance?

As our population ages, the waiting lists for care in our public system will likely increase as there is more demand for these services.  If you are suffering from a non-acute condition such as arthritic hips, cataract surgery, hernias, wisdom teeth, gall bladder removed (and many, many more) and you do not have private insurance you will likely go on a waiting list…. Your alternative is to pay for private health care.

Private health care may also provide cover for non-pharmac drugs .  These treatments can cost thousands of dollars and greatly improve longevity.  For many they are simply not affordable.

Health insurance gives you the option to seek treatment from a provider of choice, when needed and without concern for cost.

Trauma insurance

We all know someone who has suffered from a stroke, cancer or a heart attack. Life is not “black and white” when you are dealing with this type of critical illness. Everyone is different in terms of how they want to deal with their changed circumstances but most want to spend time with loved ones.

A lump sum of money gives you the choice as to how you deal with your situation. It can remove financial uncertainty and stress so that you can focus on your recovery. You may choose to pay off debt, take time out to “smell the roses”, seek alternative treatments – the choice is yours.

Trauma cover provides you with a lump sum of cash if you suffer from a pre-determined condition and survive for 14 days

Income protection insurance

How long could your household survive without your income?

Your ability to get up each day and earn a living is your greatest asset. If you could not work for 3 months, 6 months, 12 months, 5 years – what impact would this have on you and your family’s lifestyle today and in the future? All of the people I meet with insure their homes and their motor cars – yet the chance of your home burning to the ground is so very remote. The chance of being disabled due to an illness such as cancer or stroke is so much higher – 1 in 3!

If you are the main breadwinner for your family and you have limited savings, you need to protect your income.

Total and Permanent Disablement

To be told you will never be able to work again would be devastating. It is the worst possible thing to happen to you financially – statistically it is the least likely thing to happen to you.

Given it is not a common type of claim, the premiums are relatively low.

Mortgage protection insurance

It is a fact of everyday life that for the vast majority of people their mortgage is their biggest debt.

If you were unable to work, who would pay your mortgage? Do you want to risk losing your home if you were unable to work due to ill health or an accident?

Life insurance

Few of us expect to die prematurely – that happens to other people? Well ….

The fact is the chance of dying young is far less likely than suffering from a critical illness (refer back to trauma insurance) or a becoming disabled (refer to total and permanent disablement) for a period of time. The impact of premature death however is huge on the people you love and provide for.

You need to consider how your family would manage in the event of your death? Would they be able to live the lifestyle they enjoy now?

Wills and Enduring Powers of Attorneys

Taylor Made Insurance Solutions takes a holistic approach to your protection plan and as such we believe it is critical that you have your estate in order. Having an up to date will and Enduring Powers of Attorney are the cornerstone of a good estate plan. We are not experts in this field; however we are happy to refer you to someone to discuss these issues in detail. Below are some of the commonly asked questions that we field regarding estate planning.