Business Protection
Why Zurich Business Protection?
Many businesses focus on protecting their material assets and may often overlook the protection of their owners and key people. The death or critical illness of a business owner or key person is likely to have a destabilising effect on the company's ability to produce income, and ultimately, survive.
Our business protection can cover business's liabilities, key people and its shareholders. We appreciate that a business' circumstances can change overnight. That is why our business protection cover is flexible, allowing the employer to choose the cover they need, and change it when circumstances change.
Who is it for?
Our cover is flexible enough to cater for different types of businesses, including sole traders, partnerships, and limited companies.
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Key person cover
Key person protection covers a business against loss of profit, replacement costs and its liabilities if a key person were to die or be diagnosed with a critical illness.
Who is a key person?
A key person is anyone whose loss would affect the business's ability to maintain turnover or generate profits. There are different roles at a company that could be classed as key, some include:
- Managing directors
- Owners
- Technical specialists
- Team managers
Why take it out?
When a key person dies or suffers a critical illness they often need to be replaced. The recruitment costs can be expensive and it can take a long time. The loss of revenue caused by the disruption may hinder the business's ability to repay its loans and other liabilities, a responsibility that often rests with its owners. Key person cover helps to maintain the confidence of a business's customers, suppliers, and lenders.
How?
The business must first identify its key people by assessing their skills, knowledge and leadership impact. Each key person's contribution to profit then needs to be quantified. This is combined with replacement costs and the business’s liabilities to determine a suitable sum assured. Our Business Protection Fact Find and Health Check can help identify the need for protection.
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Shareholder protection
Shareholder protection allows for arrangements of share redistribution upon the death or diagnosis of a critical illness of the shareholder.
There are three arrangements to transfer shares under these circumstances:
- Automatic accrual
- Double option agreement
- Buy back agreement
Please see our Business Protection Adviser Guide for more specific details on the above arrangements.
Who is to be covered?
Shareholders
Why take it out?
All prudent businesses should have a plan in place to determine what would happen if an owner were to die or suffer a critical illness. The surviving shareholders usually acquire the right to buy the shares so that control is maintained.
How?
For limited companies or partnerships, life or life and critical illness cover can be taken out for each of the company's shareholders or partners up to the value of their share in the business. Our Business Protection Fact Find and Health Check can help identify the need for protection.
When taking out Zurich Business Protection, the employer can choose to add critical illness or critical illness select.
Life cover
Included as standard:
- Free life cover during underwriting
- Separation benefit
Additional benefits that can be added on to the policy at an extra cost:
- Waiver of premium
- Conversion option
- Renewal option
Choose the cover that’s right for your business client's employees
- Choose cover on a single life or joint life first death basis
- Choice of life cover or life cover with critical illness (both options include terminal illness)
- Choice between level, decreasing or increasing cover
- Increasing cover options of 3%, 5% or RPI
- Choice of decreasing interest rate between 2% and 18% (at 2% intervals)
- Monthly or annual premiums
- Guaranteed premiums (unless cover changes or increases)
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Eligibility
Life cover
- Minimum premium £5 a month or £50 a year
- Minimum age at entry 16
- Maximum age at entry 83
- Maximum age at end of term 89
- Minimum term 1 year
- Maximum term 50 years
- UK resident
Life cover and critical illness
- Minimum premium £5 a month or £50 a year
- Minimum age at entry 16
- Maximum age at entry 69
- Maximum age at end of term 74
- Minimum term 5 years
- Maximum term 40 years
- UK resident
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Included benefits
Life cover
Included benefit Description Free life cover during underwriting Cover for up to £2,000,000 during underwriting. Separation benefit If the employee has a joint policy and they separate, divorce, or have their civil partnership dissolved, they can cancel their policy and start individual policies for one or both of them for the same cover amount, without giving us any more details about their personal circumstances. Life and critical illness cover
In addition to all that’s included in life cover, the employee will be covered for:
Benefit Description 40 serious conditions If the employee is diagnosed with 1 of 40 serious conditions, including cancer, heart attack, stroke and multiple sclerosis, we'll pay them their cover amount. 2 additional payment conditions We'll pay your client up to £25,000 if they are diagnosed with less advanced cancer of the breast or prostate. 7 advanced payments If the employee is put on a NHS waiting list for 1 of 7 major operations to treat one of these conditions, we'll pay the cover amount straight away. Free critical illness cover during underwriting Cover for up to £350,000 during underwriting. -
Additional benefits
Additional benefits Description Critical illness select - The employee will be covered for a total of 51 serious conditions.
- If your employee is put on a NHS waiting list for 1 of 9 major operations to treat one of these conditions, we'll pay your client's cover amount straight away.
- If the employee is put on a NHS waiting list for bowel disease surgery, we'll pay the additional payment amount straight away.
- If the employee is diagnosed with 1 of the 10 life-changing conditions included in the cover before your employee's 50th birthday, we'll pay up to £100,000 on top of your client's cover amount.
- The employee will be covered for 48 additional payment conditions, including type 1 diabetes and less advanced cancers.
- If the employee is diagnosed with 1 of 5 complications of pregnancy conditions before the age of 45, we'll pay £5,000.
Children's benefit If your business client adds children’s benefit to the employee's critical illness policy – whether they’re natural, step or adopted, they will be covered for the following;
- Covered from birth to their 22nd birthday.
- Covered for the 42 conditions under critical illness.
- £5,000 children’s death benefit (from 30 days to 22nd birthday).
- Each child can take out a policy of their own up to £25,000 of cover after their 16th birthday free of underwriting.
Enhanced children's benefit If your business client chooses critical illness select and wants to add children's benefit they will get enhanced children's benefit;
- Covered from birth to their 22nd birthday.
- Covered for 99 conditions under critical illness select plus 6 child specific conditions.
- £5,000 children’s death benefit (from 24th week of pregnancy to 22nd birthday).
- Each child can take out a policy of their own up to £25,000 of cover after their 16th birthday free of underwriting.
- Double the child’s benefit amount up to a maximum of £50,000 if the child is diagnosed with cancer or requires overseas treatment for any of the covered conditions.
Total permanent disability We'll pay your client the cover amount if their employee can't do their current job ever again before they're 60th birthday, because of illness or injury. Waiver of premium We'll pay the premiums on the policy if the employee is too ill or injured to work for more than 6 months and they can't perform their current job. For joint policies, this benefit can be added for either or both lives assured. Conversion option Your client can convert their policy to a Zurich Business Whole of Life policy without the employee answering any questions about their personal circumstances. Only available on life cover only policies which have level or increasing cover. Renewal option Your client can extend their current policy with the same terms when their cover ends without the employee answering any questions about their personal circumstances. Only available on policies which have level or increasing cover.
We’ve made it possible for you to make changes without having to go through underwriting and asking questions about the employee's health, or changes in personal circumstances.
As an adviser you will have the ability to make changes to the business protection policy. You can access this through our online adviser portal.
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Milestone benefit
When significant events happen, the milestone benefit can be used to increase the sum assured without the employee answering any questions about their health.
The significant events are:
- An increase in the value of your client's business.
- Increase in the value of a key individual to the business.
- Entering into a new commercial loan or increasing an existing one.
The maximum increase that can be made to the benefit amount is the lower of the original sum assured or £200,000.
This benefit must be used within 90 days of the significant life event and can only be used if the employee is 54 years old or younger.
If your client uses the milestone benefit, their premiums will change.
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Policy changes requiring underwriting
- Increase the amount of benefit
- Increase the policy term
- Change from critical illness to critical illness select
- Add waiver of premium
- Add total permanent disability
- Review the premium if the employee previously smoked
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Policy changes not requiring underwriting
- Reduce the amount of benefit
- Reduce the policy term
- Change from critical illness select to critical illness
- Add/remove children’s benefit
- Remove waiver of premium
- Remove total permanent disability
- Remove renewal option
- Remove increasing cover
- Remove conversion option
- Change the rate on increasing cover
- Increase/reduce interest rate
Did you know...?
Your client can make changes to their policy at specific points during the term.To find out more, take a look at our Flexibility of cover guide.
Zurich Support Services is so much more than just a counselling service. We understand that there are things going on at home that can affect the employee’s work-life, and also things that are going on at work that affect their personal life. Zurich Support Services aim to help them achieve a positive work-life balance.
Talk to the team about anything at any time
Your client can talk to them about anything, from daily worries to major life events. Even if the team can’t help on the call, they can point them in the direction of someone who can. Here are just some of the things people pick up the phone to talk about:
Daily worries
- Looking for a job
- Paying back debts
- Managing household bills
- Checking consumer rights
Big life events
- Planning a wedding
- Facing separation or divorce
- Dealing with bereavement or loss
- Moving to a new house
Emotional support
- Coping with anxiety or depression
- Living with illness or disability
- Revisiting life goals
- Asking about therapy
Work
- Dealing with pressure or stress
- Balancing work with a private life
- Facing bullying or harassment
- Understanding employment rights
Zurich Support Services are available 24 hours a day 365 days a year and can be used from the moment the policy is taken out.
If the employer needs to make a claim, they’ll have their own dedicated claims specialist who’ll be with them every step of the way.
For life cover claims
Or email: Bereavements.zurich@uk.zurich.com
For critical illness claims
Or email: technicalclaims@uk.zurich.com
For fracture and hospital stay claims:
Email: multiclaims@uk.zurich.com
For more information on making a claim, visit our claims page.
Below are a selection of reasons why paragraphs for you to use in letters to your clients.
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Business Protection - Why Zurich?
We agreed that confidence in whoever is going to provide your protection solution is important to you. With this in mind, I’m able to provide some background information about Zurich which reflects their standing in the market.
Zurich Protection provides you with range of ways to protect yourself and your family against the financial impact of death, critical illness or loss of income through illness or injury. Zurich have built their products in a way that lets you choose the level of protection you need, and change it when your life changes.
Zurich is a leading insurer that serves its customers in global and local markets. With about 54,000 employees, it provides a wide range of general insurance and life insurance products and services in more than 210 countries and territories. Zurich’s customers include individuals, small businesses, and mid-sized and large companies, as well as multinational corporations.
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Business Protection - Life level
From our discussion I recommend you take out level business protection life cover of £<insert level of life cover here> over a term of <insert term> with Zurich, who will pay this amount as a lump sum if <your employee / name of life assured> dies during the policy’s term. A lump sum will also be payable if they are diagnosed with a terminal illness, as defined in the policy terms and conditions the illness either has no known cure or has progressed to the point where it cannot be cured, and in the opinion of the attending consultant, the illness is expected to lead to death within 12 months.
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Business Protection - Life increasing
From our discussion I recommend you take out increasing business protection life cover of £<insert level of life cover here> over a term of <insert term> on a rate of <3%, 5%, in line with RP> with Zurich, who will pay this amount as a lump sum if <your employee / name of life assured> dies during the policy’s term. A lump sum will also be payable if they are diagnosed with a terminal illness, as defined in the policy terms and conditions the illness either has no known cure or has progressed to the point where it cannot be cured, and in the opinion of the attending consultant, the illness is expected to lead to death within 12 months.
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Business Protection - Life decreasing
From our discussion I recommend you take out decreasing business protection life cover of £<insert level of life cover here> over a term of <insert term> on a rate of <2%, 4%, 6%, 8%, 10%, 12%, 14%, 16%, 18%> with Zurich, who will pay this amount as a lump sum if <your employee / name of life assured> dies during the policy’s term. A lump sum will also be payable if they are diagnosed with a terminal illness, as defined in the policy terms and conditions the illness either has no known cure or has progressed to the point where it cannot be cured, and in the opinion of the attending consultant, the illness is expected to lead to death within 12 months.
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Business Protection - Critical illness
You should also add Zurich Critical Illness to your business protection policy, which would pay this cover amount as a lump sum if <your employee / name of life assured> is diagnosed with one of 40 of their critical illness conditions which includes cancer, heart attack and stroke. It would also pay an additional payment on one of 2 additional payment conditions during the policy’s term.
You would, at any time, be able to upgrade to Zurich Critical Illness Select which includes an increased total of 51 critical illness conditions and 49 additional payment conditions along with other benefits.
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Business Protection - Critical illness select
You should add Zurich Critical Illness Select to your business protection policy, which would pay this cover amount as a lump sum if <your employee / name of life assured> is diagnosed with one of 51 of their critical illness conditions including cancer, heart attack, stroke and mental illness. It would also pay an additional payment on 49 additional payment conditions during the policy’s term.
Of these 100 conditions, 10 benefit from advanced payments and 10 are eligible for uplifted payments.
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Business Protection - Children's benefit
You should add children’s benefit to your business protection critical illness cover. Zurich would pay a lump sum if <your employee / name of life assured>’s natural, step or adopted children were diagnosed with one of 40 of their critical illness conditions which includes cancer and stroke. It would also pay an additional payment on one of 2 additional payment conditions during the policy’s term.
<your employee / name of life assured>’s children would be covered from birth to their 22nd birthday, with the ability to take out a policy of their own of up to £25,000 of cover after their 16th birthday. The policy also includes a £5,000 child death benefit.
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Business Protection - Enhanced children's benefit
You should add enhanced children’s benefit to your business protection critical illness select cover. Zurich would pay a lump sum if <your employee / name of life assured>’s natural, step or adopted children are diagnosed with one of 99 of their critical illness conditions including cancer and type 1 diabetes. In additions they would be covered for 6 child specific conditions including cerebral palsy and cystic fibrosis.
<your employee / name of life assured>’s child’s benefit amount would be doubled up to a maximum of £50,000 if they are diagnosed with cancer or require overseas treatment for any of the covered conditions.
<your employee / name of life assured>’s children would be covered from birth to their 22nd birthday, with the ability to take out a policy of their own of up to £25,000 of cover after their 16th birthday. The policy also includes a £5,000 child death benefit.
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Business Protection - Total permanent disability
You should add total permanent disability to your business protection policy. With this benefit Zurich will pay the cover amount <your employee / name of life assured> can't do their current job ever again before their 60th birthday, because of illness or injury.
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Business Protection - Waiver of premium
You should add waiver of premium to your business protection policy. With this benefit Zurich will pay the premiums on your policy if <your employee / name of life assured> is too ill or injured to work for more than 6 months and they can't perform their current job.
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Business Protection - Conversion option
You should add the conversion option to your business protection policy. This will allow you to convert your policy to a Zurich Business Whole of Life policy without answering any questions about <your employee / name of life assured> personal circumstances.
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Business Protection - Renewal option
You should add the renewal option to your business protection policy. This will allow you to extend your current policy with the same terms when your cover ends without answering any questions about <your employee / name of life assured> personal circumstances.
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Flexibility - Business Protection
As we discussed, it’s important that your protection fits in well with <your employee / name of life assured>’s life. Zurich have built their products in a way that lets you choose the level of cover you want, and change it when <your employee / name of life assured>’s life changes. So where they can, Zurich have made it possible for you to add or remove benefits without them having to answer questions about their health, or changes in their personal circumstances.
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Additional support - Business Protection
With a Zurich policy, <your employee / name of life assured> will have access to Zurich Support Services, an independent team of counsellors, advisers and legal experts. They offer support in the following ways:
- Free and confidential health and wellbeing service
- Impartial help and support on a wide range of issues
- An independent service provided by Zurich’s partner, Workplace Options
- Up to six sessions of professional counselling
- Not just available at claims stage – they can be used throughout the lifetime of the policy
- Available to <your employee / name of life assured> and their family with no limit on queries or issues
Zurich Support Services is available to <your employee / name of life assured>, and their family, 24 hours a day 365 days a year and can be used from the moment they take their policy out.
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Sales aids
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Policy documents
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Claims
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Underwriting
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Technical guides
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Value added services
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Target market statement
F&TRC 2018 protection product ratings
F&TRC ratings are independent protection product ratings awarded to insurance providers. The medals are awarded based on the overall proposition of the protection providers as well as a range of underlying categories.
