Dealing with ownership of a company can be difficult in the event of death or critical/terminal illness of one of the shareholders.
Shareholder Protection gives you a cash payment to buy a shareholder’s shares should they die or become critically ill, allowing the remaining shareholders to stay in control and the business to continue trading as normal.
Shareholder Protection protects a business and its shareholders
If a shareholder dies with no share protection in place, their shareholding may pass to their family. As a consequence, the surviving business owners could lose control of a proportion (or even all) of the business. The family may be willing to sell their share to the other shareholders, but they could also choose to become involved in the running of the business, or even sell their share to a competitor.
A shareholder protection arrangement enables the surviving owners to purchase the share of the business from the deceased shareholder’s estate, which can be a relief to dependants and family who will have a willing buyer and cash, instead of a share of the business.
Libra Insurance Brokers has access to a panel of leading Shareholder Protection providers including:
For international clients we use Unisure group.
How Does It Work?
In the event of a business shareholder/owner dying or being diagnosed with a terminal illness (life expectancy less than 12 months) or one of the policy-defined critical illnesses, share protection provides a lump sum to the surviving shareholders to help purchase the shareholding in the business.
Do I Need It?
Shareholder Protection safeguards your business:
You stay in control, by preventing the shareholding being inherited by an unwanted beneficiary, who may not align with your plans and operation of the company
Disruption is minimised, by making an eventual transfer the shareholding as orderly as possible
You have flexibility about how to manage the shares
You will not need buy-out capital, loans, or to use savings
The shareholder’s beneficiaries have clarity as to what they will receive for selling the shares
From individual life policies to specialist business cover, we have products to suit your every need.
Libra Insurance Brokers are independent brokers, based in London, UK. Professionally trained to recommend the most suitable products for both Corporate and Individual clients. Authorised and regulated by the Financial Conduct Authority, Libra Financial Management (UK) Ltd, trading as Libra Insurance Brokers, is entered on the Financial Services Register https://register.fca.org.uk/ under FCA firm reference 513236.