There are three customer types:
Each type of business/customer might have some or all of the following needs:
Business continuation to ensure that the business continues to run should a business owner or a key person die or be unable to work for a long period. There is a need to cover loss of profits; the costs of recruiting and training a replacement; any business liabilities that may need to be repaid or paid out (business loans; overdrafts; personal borrowings; employee redundancy costs).
Business succession looks at the need, if a business owner dies or is unable to return to work for the remaining business owners to have the financial capability to buy the deceased’s share of the business, and for the deceased’s beneficiaires to have cash in return. It does not apply to sole traders.
Family protection and business protection are closely connected for sole traders, but all business owners should ensure that their family protection needs are covered, taking full account of what might happen to their company should they or a co-owner die or be unable to work.
All these needs involve cash being available when a business owner dies or is unable to work. All these needs may be satisfied by some form of life assurance.