Yes, if your business has loans, employees, or ongoing obligations. Key person insurance protects business continuity; loan protection ensures debts are repaid; relevant life provides tax-efficient personal protection.

Most business protection premiums are not tax-deductible (except relevant life insurance). They’re typically paid from after-tax business income. However, tax rules are complex and professional advice is essential.

Generally no for key person and shareholder protection. Yes for relevant life insurance (corporation tax deductible as allowable business expense). Specific situations vary, requiring professional tax advice.

Common methods include earnings multiples (3-8× EBITDA), revenue multiples, net asset value, or independent professional valuation. Shareholder agreements should specify valuation methodology to avoid disputes.

Key person insurance compensates the business for financial loss. Shareholder protection enables shareholders to buy deceased’s shares. Same individual may need both coverages serving different purposes.

Depends on purpose. Key person: business-owned. Shareholder protection: individual “life of another” ownership preferred. Partnership protection: individual ownership typical. Relevant life: business-owned. Tax and legal implications vary.

Deceased shareholder’s shares pass to their estate (spouse, family). This creates complications: families may demand involvement, dividends, or disadvantageous sale timing. Surviving shareholders may lose control.

Yes, critical illness addition is common and recommended. Covers scenarios where key people survive serious illness but can’t return to work, triggering ownership transitions or requiring replacement funding.