(Client names and details have been changed for privacy).

As the sole founder and managing director of his successful design agency, Benedict had always been the heart and soul of his business. He was the creative force, the face of the company, and the main point of contact for every client. He had put his own money on the line, taken out a significant business loan for expansion, and was the sole shareholder. For him, the business was more than just a company; it was his life’s work and his legacy.

The diagnosis came suddenly, a terminal illness that would leave him with only months to live. While grappling with the emotional weight of this news, another, more practical anxiety began to creep in. What would happen to his business? What about the outstanding loan? And what about his family, who depended on his income and the value of the company he had built? The thought of all his hard work unraveling, leaving his family with a financial burden instead of a legacy, was a constant, gnawing worry.

In a quiet moment, he remembered a meeting with Richard Hadley from Goodniss. A few years prior, as part of their initial financial planning discussions, Richard had brought up something he had considered an uncomfortable topic: life insurance for business owners.

"Benedict," Richard had said, "People often think of life insurance as a personal product. But for someone like you, it’s a crucial business protection tool. It ensures that if the worst happens, your business doesn't die with you."

He had explained the different ways it could be structured. For Benedict, with his significant business loan and his status as a sole shareholder and director, a Relevant Life Plan was put in place. This type of policy, paid for by the company, was designed to pay a lump sum to a trust, which could then be used to help his family. It was a tax-efficient way for him to provide a "death in service" benefit without it impacting his personal pension allowance.

As with all insurance policies, terms, conditions and exclusions apply. Individual outcomes may vary depending on your circumstances and the insurer’s criteria.

When Benedict contacted Richard, his voice was, as always, calm and reassuring. "This is exactly why we put that plan in place," he said. "The value you’ve created won't be lost."

The process that followed was smooth and discreet. Richard liaised with the insurer and the policy payout was made to the trust, which then used the funds to help his family and ensure his financial affairs were in order. The payout to the trust was not liable to inheritance tax.

The tax treatment of the benefits will depend on how they are used and should be discussed with an accountant.

This provided Benedict with immense peace of mind in his final months. He was able to focus on his family and personal matters, knowing that his legacy was secure. He had worked so hard to build his business, and the life insurance policy meant that his efforts wouldn't be for nothing. The business could continue, with a new managing director, and his family would be financially protected.

For Richard, it was a poignant reminder of the true purpose of his work. It wasn't just about selling a policy; it was about providing a critical safety net that allowed a person to live out their final months without the added burden of financial worry. He had helped ensure that Benedict's legacy would be one of security, not of debt and uncertainty.

Don't Leave Your Business or Your Legacy Vulnerable.

For business owners, relevant life cover is not just a benefit; it's a strategic necessity. It's a way to provide for your loved ones while protecting your business against the financial impact of a devastating loss.

Policy features, exclusions, and eligibility criteria apply; outcomes depend on individual circumstances. Relevant Life Plans have specific HMRC rules that must be met to maintain their tax-efficient status.

Are you confident your business could survive the loss of its founder?

Contact Richard Hadley at Goodniss Specialist Protection & Insurance Advisors today for a confidential, no-obligation discussion. Let us help you put the right plan in place to protect your business and your legacy.