Purchase a plan that protects all shareholders in a private limited company or partnership if a shareholder passes away or becomes critically ill.
Our independent shareholder protection advisors are on hand to answer any questions you have and help you find a policy. We’ll aim to find you the right policy for your needs at the most competitive price for you. Provide us with some contact information, and a member of our team will be in touch.
Shareholder protection insurance aims to provide a safety net for all shareholders in the event that a member passes away or if they’re diagnosed with a critical illness (when included in the cover). If a shareholder passes away, in many cases, their shares will be inherited by beneficiaries, such as their spouse or child. If this happens, it may pose a risk to the company and the other shareholders for several reasons, such as the new shareholder having differing views and interests from the existing stakeholders.
Shareholder protection insurance aims to reduce this risk by putting in place plans for shareholders to buy and sell shares and providing surviving shareholders with a cash lump sum to purchase the remaining shares. Each shareholder will take out a plan on their own life which is then written into a trust for other business owners to ensure a smooth transition. This set up aims to keep control of the shares between the existing shareholders.
By purchasing a shareholder protection insurance policy, shareholders may receive a cash lump sum that can be used to buy the shares belonging to a deceased shareholder. However, the policy may also enter these shareholders into agreements that sets out what should happen if they pass away. There are several types of agreements that can be instated, each offering a unique solution:
Peace of mind for shareholders that there are plans in place to protect them and the business if the worst happens.
Shareholders will receive a cash lump sum that can be used to purchase the remaining shares rather than paying from personal or company funds.
The beneficiaries of shareholders who pass away will have arrangements in place that they can utilise after inheriting shares.
Shareholder protection insurance provides clarity for existing and prospective shareholders over what happens in the event of death. This may instil confidence and help to attract investment.
Every business is different, and how much a shareholder protection policy will cost you depends on many factors. When you contact us, we’ll find out all of the relevant information we need to know to compare your options and provide you with information about the cost. Some of the factors that will influence how much you pay include:
Purchasing the right level of cover will ensure that any payouts are sufficient for the remaining shareholders to purchase the deceased person’s shares. To calculate the level of cover you need, you should estimate the current value of each shareholder's position. Our advisors can help you with this process when comparing the policies for you.
Get a quoteWe offer an independent comparison service for any company or group of shareholders considering shareholder protection insurance. We aim to offer an unbiased service that results in you purchasing the most suitable and cost effective policy that meets your needs. To get started, provide us with some contact information, and we’ll be in touch.
"Having an added level of security for all shareholders can be a lifeline for companies. The passing of any shareholder is always difficult, but having arrangements in place can help to make the handover process easier for all parties involved"
Our team will personally review your options
Our no obligation service is entirely free
Our advice is always unbiased and impartial
We aim to offer a fair analysis of policies available on the market
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