If you’re involved in a partnership then you should consider protecting your investment with Shareholder protection. This policy is designed to protect all shareholders should one die or fall critically ill.
It provides the funding needed for the remaining shareholders to buy the shares of the deceased back in to the business and divide them between the remaining partners, protecting your investment.
Without it, if a shareholder dies the company may become vulnerable to a third party purchasing the shares which could threaten all the time and money previously invested.
It is important that shareholders have this form of insurance, to guarantee that all the finances invested within the company are secure. It’s also important that the amount each share is worth is agreed on as this will be the sum the insurance is in place for.
There are many different variants of this product so it’s important to get the right plan from the outset. To find out how you could be better protecting your investment, speak to one of our friendly advisors today.
**Tax treatment varies according to individual circumstances and is subject to change**