Best adviser tools for business protection 

  • Why business protection is important
  • How to use business protection tools
  • What business protection tools can be used to help your clients?
  • Why business protection is important
  • How to use business protection tools
  • What business protection tools can be used to help your clients?
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Best adviser tools for business protection 

The main reasons for not having protection in place were not feeling it’s relevant for the business or seeing the need for it, because it isn’t mandatory, thinking it’s too expensive and not knowing enough about it.

LV= has published a webpage to help advisers identify existing personal protection clients who could be business owners. “Many advisers assume they don’t have an existing business protection client base – so don’t write it.” says Christopher McNab, head of protection propositions.

LV=: https://www.lv.com/adviser/business-protection/business-protection-guide/steps 

Valuation tools



Valuing a company in order to put appropriate business protection in place can be one of the most difficult tasks when discussing plans with clients. Mr McLoughlin says in his experience “most people don’t understand the balance sheet, so arriving at a valuation for the business can be difficult.”

Emma Thomson, head of customer care at LifeSearch agrees: “In our experience we find approximately 90 per cent of business owners don’t know the value of their company, which is particularly relevant for shareholder and partnership protection. 

“A tool we use a lot is LV=’s business valuation calculator to give an indicative idea. Of course an accountant would need to verify the valuation before cover starts, but this gives us a good place to start from in terms of recommending appropriate cover.”

Mr McLoughlin also recommends Legal & General as having useful tools for arriving at sum assureds for business protection, looking at average net profits and business assets. 

LV=: https://www.lv.com/adviser/share-and-partnership-protection/tools-and-support/business-valuation-calculator 

L&G: http://www.legalandgeneral.com/advisercentre/technical-centre/tools-calculators/business-valuation-calculator/

Case study films



When trying to get client to buy into the need for business protection, using case studies can help to make the situations being discussed real.

Stephen Crosbie at Aegon said: “Our research found that 76 per cent of advisers need more anxiety generation material to use with clients. 

“To help address this, we produced a case study video, based on a real-life scenario, to highlight just how important business protection is.

“This video really drives home the message of what can happen, not just to businesses, but also family members if the appropriate cover isn’t in place and the unexpected happens to a key individual or shareholder within the business."

Zurich has also produced a video for advisers looking at scenarios of losing a key person and how a business would cope with and without business protection in place. 



Aegon: https://vimeo.com/139929628

Zurich: http://link.brightcove.com/services/player/bcpid3328627985001?bckey=AQ~~,AAAB2oUw_tk~,S5Ox5WawkSddd2kJSUMwr30MterXYRHe&bctid=4508771131001

 Business risk calculators



The impact of losing a key person within a business can be catastrophic, as it can lead to a loss of contacts, revenue and costly recruitment or head hunter fees and issues with the family of the key person if they become the shareholders.

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