PARTNERSHIP AND SHAREHOLDER PROTECTION
The death or serious illness of a partner or shareholder can be extremely damaging to any business.

Capital injected into the business at such a time can maintain the firm’s ability to continue trading.

How does it work?

	If a Shareholder dies, the deceased’s shares may pass to the spouse or heir.
	This could mean the surviving shareholders find themselves with a new controlling shareholder.
	If a "double option" agreement and life assurance policies are in place, the surviving shareholders would receive a lump sum from the policy roughly equal to the deceased’s shareholding.
	The "double option" agreement states that the surviving shareholders have an option to purchase the shares.
	Likewise, the deceased’s heirs have an option to sell the shares to the remaining shareholders. In this way the deceased’s estate receives fair value for the shares and the surviving shareholders retain full control of the company.

	Cover can be arranged to provide a lump sum if a partner or shareholding director suffers a critical illness.
	Plans can also be purchased to cover a partner or shareholder if they suffer an illness or accident which prevents them from working over a long period.

What are the costs?

Cover can be arranged at low cost.