How can Shareholders Protection help your business?
The loss of a shareholder or business partner is likely to have a significant effect on a business, not to mention the shareholder’s family. It can cause great concern over the future ownership of the business, particularly if the remaining shareholders are unable to raise the funds to purchase the shares from the deceased owners family.
A share protection arrangement enables the surviving owners to buy back the deceased owner’s share of the business from the deceased owner’s family and ensures that the remaining business partners keep control of the business.
Why should I get Shareholder Protection?
With Shareholder Protection, in the event of a successful claim, the claimant’s family are compensated for the value of the shares and will not need to be involved in the running of the business.
The sum insured amount you choose is usually based on the amount of capital the remaining partners would need to buy out their outgoing colleague’s equity in the company.
So why Shareholder Protection? You can rest assured that your business partners would be covered and your family, which would be a win—win scenario if the worst were to happen. help replace the key person and cover any revenue loss.
It provides stakeholders with the confidence that your business can survive in the event of losing a key person through death or critical illness.
Sandra is a Senior Protection Adviser with over 40 years of experience within the financial services industry.
Call Sandra on: 0800 197 0504