Shareholder & Partnership Protection.

Protects the business and family to keep the business running.

Each business partner or director takes out a life insurance policy on their own life for an amount equal to the value of their shareholding.

In the event of death or diagnosis of a critical illness, the other directors or partners receive a cash lump sum which can be used to buy the affected shareholders shares.

The policy is placed in trust from the outset which ensures that the shareholders family receives their part of the inheritance as quickly as possible with minimum disruption to the business.

Without adequate funds or agreements in place a company may be unable to buy out the deceased share of the business.

This will mean leaving any remaining spouse or dependants without an appropriate level of income.

A consequence would also be that the company has an inappropriate member of the deceased family taking control of their business interests.