July 11th, 2018

How long could you manage if you couldn’t work?

Most clients I chat to about the unpleasant stuff – the “what if you get hit by a bus and die?” sort of stuff are often pretty well covered. Perhaps things need a bit of updating but it’s usually a question that has, at the very least, been thought about already.

Change the question to “what if you get hit by a bus and don’t die?” and the answer is very different. I find many people simply have no protection in place to provide an income if they couldn’t work for a period of time.

So, what would you do if you couldn’t work for a month? Six months? A year? Longer?

When would the money run out? How long could your family support you? How would your lifestyle change?

It’s also worth thinking about whether you have any indispensable staff or business partners – and how you’d cope if they were unable to work.

Last year a friend of mine had a really difficult and upsetting situation. His business partner had been diagnosed with a terrible form of cancer. His treatment meant he was hardly able to work and that meant a lot of their income dried up. As a small business he simply couldn’t afford to keep paying him when he wasn’t working. Ultimately my friend had to tell his colleague that the money was coming to an end. It was a conversation he was dreading for months.

The solution, to help protect both yourself and your business partners, is an executive income protection plan.

These plans pay money to the company when a claim is made so that salaries, dividends and pension contributions can still be made.

The company pays the premiums (which are tax deductible) and there’s no benefit in kind on the employee.

If you’d like a detailed review of your situation then please get in touch and we’ll introduce you to a business protection specialist who can set up a suitable plan.

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Business advice

by
Managing Director

Jonathan trained as a chartered accountant with Price Waterhouse (now PWC) in Liverpool before becoming a small business services manager for Grant Thornton in Warrington. He also spent three years as the financial controller for Brookside and Hollyoaks (not that he ever mentions it!).

Jonathan is recognised as a specialist in the entertainment industry and is often called upon to provide training courses and seminars for media professionals. He's also a bit of a technology geek and has been recognised with the accountancy industry as one of the most progressive accountants in the UK.
Outside of work Jonathan is very proud to be the Treasurer of the Tim Parry Johnathan Ball Foundation for Peace and to be on the Council of the Liverpool Institute of Performing Arts (LIPA)

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