If a shareholder, member or partner in your business were to die could you afford to purchase their share of the business? If not there could be significant implications for the future of the business. Share protection can help you protect the ownership of your business in this situation.
- What is Share Protection?
The loss of a business owner may destabilise a business and can quickly lead to financial difficulties. Share Protection allows the remaining partners, directors or members to remain in control of the business following the death of the business owner.
- How does Share Protection work?
In the event of a business owner dying or being diagnosed with a terminal or specified critical illness, share protection can provide a lump sum to the remaining business owners. This means that in the event of a valid claim being made during the length of the policy, the policy could pay out a lump sum to help purchase the deceased partners/directors/members interest in the business.
Why consider Share Protection?
If a business owner dies with no share protection in place his or her share in the business may be passed to their family. This means that the surviving business owners could lose control of a proportion or, in some circumstances, all of the business. The family may choose to become involved in the ongoing running of business or could even sell their share to a competitor. A share protection policy can help avoid these issues.