Business Debt Protection
Eight Suppliers - Multiple Options
"Business Debt is Business Debt" and should be protected seperately from personal debt (albeit the debt may be secured over personal assets).
With Insurance there are a number of issues to be considered:
- What is the reason for the cover?
- What is the exposure in dollar terms?
- What are the events to be covered?
- Who is to be the life/lives assured?
- Who will pay the premium?
- Who will recieve the benefit?
- What are the tax implications for the premium and the benefit paid?
- What happens if anything is left over?
There is an arguement that basically says that "if a loan is taken out for business needs (either over personal or business assets) and the lender(s) require that an insurance policy needs to be applied over the life assured to erase the debt if a major trauma event or death happens to the life assured, then the premium paid for this cover may be claimed as a taxable expense without the proceeds being taxed at claim time (conditions apply and financial and tax advice needs to be sort). This is why this policy needs to be seperated out from other issues as the parts of the contract are specific to this contract.
Please tell me more about Business Debt Cover
|
