Corporate Financial Services
As an Employer, a well-designed and presented employee benefits package fosters and enhances the goodwill you have with your employees. It is a very valuable component in recruiting and retaining staff.
It is the breath of our skills and attention to detail that make the difference when doing business with LHW Financial Planning. We work in partnership with you and take time to listen and learn. This type of service allows us identify and prioritise the most important issues for you and your employees.
We embrace new technology to help communicate the value of these benefits effectively. We value traditional standards of client care. We take time to get to know you and your business so you always deal with a familiar person, an often lost art nowadays.
LHW Financial Planning takes time to ensure that the benefits package is fully understood and valued by your employees. We meet one-to-one to assist them take ownership of their financial affairs, whilst also endorsing the role the Company may be have in this process.
Our aim is to provide your Company with a professional, dependable and trustworthy corporate financial planning service.
Defined Contribution Pension
A well designed Defined Contribution pension scheme is possibly the most valuable benefit an employer can provide to its employees.
When it is combined with a real personal service, it allows your employees manage their own retirement fund effectively. A state of the art scheme will be very cost efficient and will offer you and your employees a high degree of flexibility. It will provide them with an excellent choice of investment options, together with the advice they need in order to take ownership and control of their own pension fund.
Shareholder Protection / Partnership Protection
Shareholder Protection/Partnership Protection or Company Buy Back Insurance is a means of solving the financial problems that can arise following the death of a shareholding director.
The death of a company director can cause major problems for the surviving directors, and the deceased’s personal representatives or the deceased’s next of kin.
Problems for the surviving director
A new business partner
Loss of control
Inability to buy out the new shareholder
Personal representatives/next of kin
No ready market for the shares
Cash flow difficulties
A solution for everyone in this situation is to take out a Life Insurance or Serious Illness Insurance on the life of each director.
The way this works is as follows:
- The company enters a Contingent Purchase Agreement Contract with each shareholding director.
- The company effects a life assurance policy on the life of each director covered by such an agreement, to provide funds on death to enable the company to complete the buyback of shares. The company pays the premiums.
In the event of the death of a director covered by such a Contingent Purchase Agreement Contract, the company would use the proceeds of the insurance policy on his life to buy back his shares on death and cancel them, or hold them as ‘treasury shares’. The surviving shareholders would therefore retain full ownership of the company.
It is worth considering this type of insurance in the context of any overall business ownership succession planning. However the arrangement is complex, and may not be appropriate in every case.
Key Person Cover
Keyperson Cover is a Life assurance or Serious Illness policy effected by an employer on the life of a key employee, who may also be a shareholder or director, to protect the company against the financial consequences they would suffer as a result of that individual’s sudden death or serious illness.
A keyperson is any ‘key’ or important employee or director on whom the business depends for its continued success, or existence, and on whose death or serious illness the business could suffer a financial loss. The cover is designed to protect the value of the company’s human assets in much the same way as fire insurance protects a company’s physical assets.
It can provide an immediate lump sum payment to the company for them to use in any way it chooses:
- repayment of bank loans, particularly any to which the key individual has given a personal guarantee.
- repayment of any loans the key person may have made to the company.
- recruitment of a successor.
- investment in the business.
The most important point to consider in relation to the taxation of key person contracts is whether the proceeds payable on death or serious illness will be liable to tax. For that reason it is vital to get advice.
Group Life & Income Protection Cover
- A simple and very efficient way of providing life and income protection benefits to both you and your staff.
- A key role for staff retention, recruitment and general feeling of wellbeing of key staff.
- Very valuable free cover limits depending on staff size. This is a figure determined by the size of the scheme where no medical evidence is required.
- A real surprise when it comes to premium levels. It is very attractive!
- Premiums which are allowable business expenses and can help reduce your corporation tax bill.
- A huge benefit to staff in managing their own personal finances.
LHW Financial Planning gives your employees access to the very best pension scheme design.
We help employees understand the value of providing for an independent financial future through a process of coaching and education. This includes explaining to employees the added value their employer is providing to their pension journey. Through our coaching support pension scheme members have the freedom to take ownership of their future, knowing they have the expertise of LHW Financial Planning behind them.
When setting up a corporate pension scheme LHW will meet your employees one to one to ensure their risk appetite is matched with the appropriate choice of fund. These meetings also allow employees identify any other aspects of financial planning that may be causing concern.
Employees have access to carefully designed risk management strategies that are easy to understand. These range in risk from a cautious strategy to a more adventurous one. Once an employee pension is set up there is 24/7 online access detailing all aspects of their pension. Passwords and individual member ID controls are put in place.
Personal care and attention are at the core of our service.
Defined Benefit Advisory Service
When a client asks LHW for advice about their Defined Benefit pension scheme, the context is generally one of financial concern and uncertainty.
This is quite normal as the design of these schemes comes from a different era and is generally unsuitable for employers in today’s world. The good news is that an effective solution is available. LHW have the expertise and the experience to deliver this solution for you and to replace your DB scheme with one that is more appropriate for a modern business.