The saying 'cashflow is king' has really been brought home to companies in the last few years. Those with cash in the bank have been able to profit from the downturn and we are seeing the survival of the fittest.

Everything the company aspires to revolve around maintaining a steady, and hopefully increasing, stream of revenue. This is why Income Protection is an integral part of Cashflow management and maintenance. With the paucity of available state benefits, employees are increasingly relying on employers as their back-up plan.

"It's reassuring knowing my income will remain intact if anything bad happens."

T Walker, Operations Director, Junior Heroes, London

Furthermore, what happens if a director or key employee is unable to contribute to cashflow long term, and is indeed dragging it down? Do you have agreements in place that after 6 months, for example, you will no longer pay the wages of a key employee or shareholder? Executive or Group income cover replaces an employee's income in the event of them being unable to work due to illness for a prolonged period. There is an initial waiting period prior to the onset of payment of the benefit and full plans pay to retirement date or more cost effectively for 2 years.

These policies are comprehensively underwritten up front, potentially with Doctor's reports and medical examinations, the costs of which are borne by the insurer. They do pay out as we have administered and ensure cashflow is not impacted by the 'Dual Drag'; increased expenditure on a replacement and reduced revenue from that individual.

An income is paid to the company, some of which can be distributed to the individual and some to insure that cashflow does not drag the company income down. Instigation of these plans can also be a healthy way of bringing these awkward discussions to the table. There is a vast array of complimentary 'Back to Work' schemes, the offer of free consultation with the world's best doctors, the provision of health help-lines and even the provision of counselling services to nip illness in the bud. Here you and the insurer are batting for the same team in wanting your employee fit and healthy; for them to stop paying the claim and for you to get the employee back contributing to company cashflow.

Contact Us to enable your company to remunerate employees whilst maintaining cashflow and revenue.