Whole-of-market access, including cover from
Protects a business from the potentially damaging financial implications of a shareholder or partner's death.
Whole-of-market access, including cover from
Also known as shareholder or partnership protection, this typically combines life insurance (and often critical illness cover) with a legal agreement, so that if an owner dies or becomes critically ill, the remaining owners can buy their share, rather than it passing to family members who may have no involvement in the business.
Each owner is covered under an individual policy. If a claim happens, the payout gives the surviving owners the funds to buy the deceased or critically ill owner's share, at a fair, pre-agreed value, without having to find the money elsewhere or sell business assets.
Without this in place, a share can pass to a spouse or family member who may want to sell, get involved in running the business, or simply doesn't have the same working relationship with the other owners.
Any business with more than one owner: shareholders, partners, or members of an LLP.
A deceased or critically ill owner's share can pass to a spouse or family member, who may want to sell it, get involved in running the business, or simply have very different priorities to the remaining owners.
Ideally yes, so the agreement works fairly for everyone, though it's possible to start with the owners it matters most for and add others later.
Usually set out in the legal agreement that sits alongside the policies, often reviewed periodically so it keeps pace with how the business grows.
It can. Many arrangements combine life cover with critical illness cover, since a serious illness can just as easily disrupt a business as a death can.
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You can check this on the Financial Services Register by visiting the FCA's website www.fca.org.uk or by contacting the FCA on 0800 111 6768.