023 8025 4006
This type of insurance can go under many names including -
- Director protection insurance
- Partnership protection, and
- Shareholder protection
Ownership protection pays out a cash sum if a Partner or Director (with a share holding) dies or suffers from a critical illness. If the policy pays out the money can be used by the remaining Partners/Directors to buy his shares.
One of the main areas to consider for Partnerships and company directors with large share holdings should they pass away is -
- Who will their shares be left to, and
- What in turn might this shareholder do
For Example
The Commercial Director who owns 25% of the company suddenly dies of a heart attack
The shares are left to the spouse/partner who has no business knowledge
It’s always possible with a 25% share holding they could be a nuisance especially if they decide to sit on the board
Or they could sell the 25% to somebody or a company that the other directors view as potentially hostile
The Commercial Director who owns 25% of the company suddenly dies of a heart attack
The shares are left to the spouse/partner who has no business knowledge
It’s always possible with a 25% share holding they could be a nuisance especially if they decide to sit on the board
Or they could sell the 25% to somebody or a company that the other directors view as potentially hostile
Ownership protection cover enables the following to happen
- The company or partnership continues without any potential outside influence, and
- The deceased director's estate gets a fair price for the shares or partnership holding.
- It protects your family if you've given personal guarantees
- It gives peace of mind for the company's bankers and backers