In the event of the death or serious illness of a partner or shareholder/director, the surviving shareholders may want to ensure that the shareholding remains within the business. This will ensure that the business can continue to be run as before.
The most common business protection. Your business can insure against anticipated drop in profitability in the event of the loss of a key employee through death or serious illness. This is done by the business putting in place a life assurance and/or serious illness plan on the key employee in question.
The directors and partners of a business can ensure where a shareholding is changing hands because of a death or serious illness that is done so by protecting the remaining shareholders. The legally binding structure of a buy and sell agreement ensures there is full protection for all parties concerned.
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There is a range of options and extras in every plan you have which can be the most cost effective way of adding an extra layer of cover without the need of taking out a new plan.