Defaqto has released a guide for advisers that provides an all-in-one document on personal protection for small business owners.
The guide runs through the principles of business protection and looks at executive income protection and relevant life cover in relation to small business employers and staff.
Ben Heffer, insight analyst for wealth and protection at Defaqto, said: “Our new guide provides a checklist for advisers when considering personal protection in the form of income and death benefits.
"With the growing number of small businesses it is far too easy for business owners to only consider protection products for their business but in many cases the business is the individual and advisers are best placed to help guide clients through the various options and their benefits."
Stephen Crosbie, protection director at Aegon, said: “Many small businesses don’t have the scale to qualify for group risk schemes.
"This lack of protection among small businesses presents advisers with an opportunity to add value to their small business clients, by developing competitive benefit packages for employees in a tax-efficient way, using relevant life and executive income protection policies.
“Executive income protection can be a valuable feature to include in an attractive benefits package as, statistically speaking, it is more likely that an employee will be unable to work due to an illness or injury, rather than dying.”
Paul Crandles, an IFA with Chartered financial planners Crandles & Co, said: “Anything that the industry can do to educate us and generally support advisers in our work can only be a good thing.
"That said, too much information can be a bad thing if it is not presented in clear and helpful manner. I’d hope that this guide does not fall into that category, but rather is a helpful tool for IFAs to use.”
To learn more about group protection, and earn 30 minutes of CPD, click here to read FTAdviser's article on Why group risk advisers need to identify presenteeism.
dan.moore@ft.com
