The owners of a company are its shareholders. It is vitally important that a company has some business protection in place to avoid any problems that could arise if a company shareholder became critically ill or died.
Providing protection for shareholders can be complicated. For example, when there are many people involved, if there are disagreements among shareholders or if a shareholder doesn't have any knowledge of the business they have a share in.
If a plan is set up correctly, on the death or critical illness of a shareholder, the other shareholders will receive a cash sum to buy his or her shares. This ensures minimum disruption to the company and the critically ill person or the family of the deceased shareholder will receive a cash amount equivalent to the value of their shares.
There can be many issues surrounding the value of a shareholding and it is vital that professional advice is taken. Please contact us for a free initial consultation to see how this type of cover may help you.