Shareholder Protection

✓ Help avoid disruption to your business if a colleague were to die.
✓ Stay in control by preventing the shareholding from being inherited.
✓ Benefits & Rewards Schemes

  • What Is Shareholder Protection?

    Shareholder Protection enables the surviving owners to purchase the deceased owner's share of the business from the deceased owner's estate and ensures that the the surviving dependants have a willing buyer and cash instead of a share of the business.

  • How Does It Work?

    In the event of a business owner passing away or being diagnosed with a terminal illness (life expectancy less than 12 months) , share protection can provide a lump sum to the remaining business owners.

    If a valid claim is made during the length of the policy, the lump sum could be used to help purchase the deceased partner, shareholding director, or member’s interest in the business.

  • Added Benefit

    Shareholder Policies have no income tax liability on the proceeds, this is due to the fact each policy is qualifying and has no surrender value. Neither will there be CGT, because the proceeds are payable to the original beneficial owners the other business partners.

    If all the business owners take part in the share protection there will be no Inheritance Tax (IHT) at the outset or when further premiums are paid.

Shareholder protection premiums are based on risk. The monthly amount will depend on a number of factors relevant to the insured person, including:

  • Age

  • Lifestyle and occupation

  • Health status (and health history)

  • Smoking status

  • Alcohol consumption

  • Family medical history.