What is it?
Provision of a lump sum to each of the remaining shareholders or partners, should a shareholder or partner of your business unexpectedly die. The cash sum provided is used to purchase their shares or interest in the business back.
Why does our business need it?
Do you want to retain control of your business should a key stakeholder pass away or suddenly become critically ill? There is a real danger that a external party or inexperienced family member could end up having a say in your business if you don’t have provisions to prevent it happening.
Shareholder or Partner insurance protects against:
- Shareholding / partnership interest passing to the deceased’s estate.
- Financial implications of buying back shareholding / partnership interest.
- Sale of shareholding / partnership interest to external third party.