Shareholder protection is a form of business protection insurance, it is in place to protect all shareholders should one fall critically ill or die. It provides the funding needed for the remaining shareholders to buy the shares of the deceased and divide them between the remaining holders. Shareholder protection is there to protect your investment. If a shareholder dies the company may become vulnerable to a reckless party buying the shares. All the time and money previously invested would be wasted. Shareholder protection allows the remaining shareholders to make sure the company is secure from competitors.
Who Needs It?
Any shared business should have shareholder protection. It is an important asset to make sure that the company is secure and that the investment for all parties is protected. It also has the added benefit of making sure that your family will be financial stable should anything happen to you.
Benefits of Shareholder Protection
There a range of benefits shareholder protection provides. It provides an instant lump sum to the remaining shareholders to ensure that the business can continue to run with a minimum amount of disruption. It protects company shares from be sold to a reckless party or competitor. It also ensures that your investment is safe and will guarantee your family a financial sum.
Who is Protected?
All shareholders are protected. Should one of you become critically ill or die the other will have the funding to make sure the business is secure, and can provide the family of the deceased with an immediate buyer for their share of the business.
Why it’s Important?
It’s important because not only does it protect your financial investment in the long term, but should something happen to you it allows your family to have an instant buyer for their shares in the company. This gives them instant access to important funding and allows the remaining shareholders to buy your shares and distribute them between the remaining holders, stopping the business becoming affected by an outside buyer.
It is important that all 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. A contract needs to be in place which states that the insurance pay out will be used to buy the deceased’s shares and all remaining shareholders will receive an equal share of those brought.
Where Should You Buy It?
At Quotesupermarket.com we have a range of specialist business advisers who can find you the best business protection insurance available. They will compare the best UK providers to bring you a range of quotes which meet the needs of your business. We can save you time and money just simply fill in our short form and we will do all the hard work for you. Our service is completely free and all quotes you are given are no obligation.
You May Also be Interested in Relevant Life Cover
If you are a company director make your life insurance tax efficient with a relevant life policy. The insurance premiums are paid by the business on your behalf. Relevant Life is an allowable business expense so its tax deductible and can result in savings for a business when compared with a typical life policy. We can also compare a range of brands to find you the best deal with relevant life cover. So you can make sure your family are completely secure should anything happen to you.