WHAT IS SHAREHOLDERS PROTECTION?
Shareholders Protection is a Life Cover policy and, sometimes, a serious illness cover. When a shareholder dies, their shares become part of their estate and this can cause problems for the remaining shareholders. Shareholder Protection pays out a lump sum to the remaining shareholders so that they can purchase the shares from the estate of the deceased shareholder. This protects both the surviving shareholder(s), and the family of the deceased shareholders.
Often, a Shareholders Protection policy is entered into in conjunction with a shareholders’ agreement which determines whether all of the shares, or a portion of the shares are purchased, and how the shares are valued at the time of death.
If you wish to speak to an expert advisor about Shareholders Protection, please call us at 01202 082380 or email email@example.com.