Importance

Every business owner will understand the hard work, time and responsibilities it takes to start and run a successful business. A sound financial plan for your business is essential to avoid unnecessary financial strain and misunderstandings on the owners, stakeholders and management of the business. The plan should tackle issues such as death, disability and retirement of key persons within the business, and how their roles, assets and worth should be handled in such an event. The financial impact of such events should be addressed and proper insurance and continuation policies put in place.

Tax on Business Insurance

The tax implications on business insurance and continuation policies may vary and it depends on various factors such as:

Type of policies in place, what and whom they cover – Key man insurance, Buy-and-sell agreements, last will and testament to name a few. Each of these policies and plans may attract different tax implications, making the continuation process long and tedious if not done correctly.