Revenue Protection
Six Suppliers - Multiple Options
One of the major causes of failure of a business is CASHFLOW!
In most cases "CASH IS KING"
This is no truer than when a "Rainmaker" in your business is temporarily disabled.
Complimentary to Key Person lump sum covers, these contracts work to supply a monthly benefit for less drastic temporary events, after a wait period, but typically for a short benefit term (1 or 2 years).
Newer contracts are not income tested at application time or claim time and most of the newer contracts will not be offset, (reduced) by other benefits paid in respect of the same event (such as ACC).
These policies compliment the lump sum covers provided for under the Key Person benefits, and are designed to cover serious temporary events which can impact the cashflow of the business. Lump sum covers under the Key Person contracts may take some time to come through and will only cover major events which will knock a key person down for the long term or permanently.
These policies are normally set up to be owned, premiums paid by, and any benefit paid to the company. The premiums are normally tax deductible and the benefit tax assessible but we suggest you talk to your accountant regarding these issues.
Revenue contracts can be combined into a KEY PERSON Contract or treated seperately. |
