A growing tech start-up faced the challenge of protecting its operations from potential disruption if its 45-year-old Managing Director, Henry, were to become unable to work. As the founder and driving force behind the business, Henry’s leadership and vision were crucial. His involvement not only shaped the company’s trajectory but also secured vital venture capital funding during its critical early stages. Aware of the financial and operational risks of losing such a key figure, the company sought expert advice.
Neba Private Clients worked with the start-up to assess the financial impact of losing Henry, calculating a potential loss of $8 million, which included reduced revenue and the costs of recruiting and training a replacement. To address this, Neba recommended a Universal Life Insurance policy with a guaranteed death benefit of $8 million. The business agreed to fund the $100,000 annual premium over 20 years, securing peace of mind and protecting their long-term financial health.
To further strengthen their position, the start-up adopted key person insurance. This solution provided essential financial support to offset revenue losses and facilitate the recruitment of a successor, ensuring the business could continue its growth trajectory. Additionally, the company could leverage the life insurance policy’s cash value for unexpected expenses or retirement planning, helping them maintain financial flexibility.
Recognising the importance of overall employee well-being, Neba also helped the company implement tailored group health coverage. This initiative protected the workforce, creating a safer and more secure environment for employees while supporting the business’s operational resilience.
Neba Private Clients’ comprehensive solutions enabled the start-up to safeguard its key leadership, financial stability, and employee well-being, ensuring the business was well-prepared for future challenges.
TEAM plc (LON:TEAM) is building a new wealth, asset management and complementary financial services group. With a focus on the UK, Crown Dependencies and International Finance Centres, the strategy is to build local businesses of scale around TEAM’s core skill of providing investment management services.
