Share protection through life assurance
Share agreements between directors or partners may ensure that the remaining directors are able to purchase the shares of a director should he/she die. However, there is a risk that those remaining may not have sufficient funds available when a fellow director passes away unexpectedly.
Taking out life cover could provide that source of funding.
To arrange such cover requires the understanding and agreement of all concerned. It will also involve some careful figure work to determine how much cover is required. However, it will be a comfort to all directors or partners of a business to know that their own or a colleague’s death will leave the other directors with sufficient support to carry out the terms of their shareholders’ agreement.
AFP Shrewsbury is a trading style of Gary Harper (FRN 755477) who is an Appointed Representative of AFP Partnership (FRN 300003). AFP Partnership are authorised and regulated by the Financial Conduct Authority. Certain products, including Buy to Let and Commercial mortgages, are not regulated by the Financial Conduct Authority. To discuss director share protection in more detail, call now for a no obligation chat on 01743 364377 or e-mail firstname.lastname@example.org