A Vestura Group company | 01509 380 127 | hello@rootsinsurancebrokers.co.uk
Provides funds to shareholders to buy others out after a serious injury or death
One thing that no-one ever wants to think about is a fellow shareholder suffering from a critical illness or even worse, dying. Shareholder protection provides the remaining shareholders with a lump sum to buy back the shares from the deceased estate and retain control of the business.
Policies are tailored to the needs of each business, with everything setup in trust and mirroring the legal structure of the business to avoid conflicts with existing contractual agreements, and the amount of cover calculated according to each owners individual shareholding.
Business protection policies cannot be bought directly on the internet, a qualified advisor must be used. As Roots Insurance Brokers is part of the Vestura Group we can offer this via our sister company The Mortgage Lodge.
All policies include life insurance, which can be written on level, inflation-linked, increasing or decreasing basis, and can be extended to include critical illness cover, and can be on a whole of life basis or up to a defined age.
Policies can be written in trust – a legal arrangement allowing the policyholder to gift the lump sum to the beneficiary (the business), and which keeps the businesses running normally, doesn’t impact who remains in charge or affects finances.
Policies often have additional, value adding features such as telephone support lines – helping businesses owners and loved ones by providing emotional support to assist them in coming to terms with the devastating impact of events.
The policy is in the name of the company. Shareholder take out life insurance for the benefit of fellow shareholders.
The company pays for the premiums. If the payments stop then the cover also stops.
The pre-agreed amount is paid in a lump sum to the company upon death or diagnosis.