Shareholder Protection
Have you ever wondered what it would be like to be in business with the spouse of your business partner? Well quite possibly not but if something were to happen to your business partner the chances are that this could be the outcome. Clearly this is not ideal for anyone. The spouse might want to obtain maximum value from the business. You would probably prefer to buy out the spouse and own all of the business.
Who benefits from Shareholder Protection?
- Anyone in business with another person
- Where there is value in the business
- Where both business partners are insurable
This is a low cost solution to a common business problem.
How it works
Each business partner takes out life insurance (or life and critical illness insurance). The policy is written so that any proceeds are paid into trust. A separate cross option agreement is written to ensure the proceeds of the trust are used to purchase the shares of the deceased or ill partner.
What to do next
If you are in business with another person, especially if you are both unrelated then this solution should be seriously considered. You will probably have personal life insurance anyway. This is a simple way of taking care of your life insurance needs and sorting out what happens to your share of the business at the same time. Call 0121 764 5161 for advice on Shareholder Protection.
