Lutine’s Business Protection product is designed to help businesses protect themselves from the financial impact of losing key talent, an executive or business partner due to illness, injury or death. The package can be used for keyperson, partner/shareholder protection or business stopgap needs.
Based on Lutine’s executive protection policy, the package’s key features are:
* Up to £5m lump sum compensation per executive for life and permanent total disability is available, subject to age and residency.
* Up to £1m of critical illness cover is available.
* The maximum monthly income protection benefit is 75% of salary.
* Comprehensive cover can be provided in one policy.
* The package offers flexibility of product purchase.
* A menu-style proposal form makes it easy to tailor the cover to suit each client.
* Clients can choose from a wide range of benefits, cover levels and waiting periods.
* Cover is available for 1-5 years.
* Premiums can be single, monthly or annual.
* Commission rates are flexible.
What They Say
Andy Coles, development director for Lutine, said: "Our executive protection product can combine life, disability, critical illness and income protection cover into one policy, making it is one of the most comprehensive and flexible products in the market allowing businesses to tailor the cover to their own requirements.
"Research from Legal and General found that 40% of businesses ceased trading within a year following the loss of a key member of staff. And for sole traders, the facts are even more stark, with 63% stopping trading immediately.
"Given more than half of UK businesses don’t have any sort of business protection in place, we believe our executive protection product is a timely reminder that it is people, not plant and machinery that make businesses successful."
What We Say
"Many firms should consider keyperson and business owner cover but too few actually have it. That may be because it appears complex or that they simply are not aware of the possible insurance solutions and costs.
"Lutine seeks to address that by offering a package around its executive protection product. This can include not just life and critical illness cover but also income protection.
"However, while the concept looks good, the technical information in the online brochure is relatively thin on detail. That’s a pity, as good quality technical information is essential in ensuring business clients get not just the right insurance covers for their needs but also understand the surrounding issues around how to set up the policies, the use of trusts and agreements and other matters."