Shareholder Protection Insurance
Accredited For Business Protection
Shareholder protection insurance provides shareholders with monies in the event of death or critical illness. It is designed to provide a lump sum of money to the remaining holders to enable them to purchase the shares from the deceased partner. In most companies, shares will be passed to the husband or wife of the deceased. This insurance allows the company to buy back the shareholding while also giving the wife or husband the monetary value of what the they are worth. Thus both the company are happy as they retain control and the wife/husband is financially better off.
What we do
Whole of market research in to all the companies. This means you get the best deal!
Set up of each application for each individual person. In most cases this can be done over the phone.
Free Cross Option Agreement advice and help to set the up (We provide the agreements for you for free)
We are experts in the market having set up many policies in the past we know what we are doing
What Does It Cover?
It can cover death or critical illness of each shareholder.
What Option Agreements do we use?
In the event of death the cross option agreement will allow both parties (the remaining shareholder or the deceased beneficiary) to trigger the agreement and use the money to purchase the shares from the deceased beneficiary. If the policy includes critical illness you may choose to opt for a single option agreement. This only allows the person with the critical illness(life assured) or the remaining shareholders to trigger the agreement but does not give the option to both. The option will be decided on the out set.
What happens if there is a claim?
If a shareholder dies or suffers a critical illness (that hits one of the definitions) then there remaining shareholders would need to place a claim with the provider. If the claim is successful the lump sum of money will be paid to the company or directly to the shareholders (depending on how it was set up). Money is then paid out as per the option agreement.
Do we need this?
If you are one of a number of shareholders then you should look at protecting your shares. Think about what would actually happen if your company lost a major shareholder. Would you be able to buy those shares back from the deceased beneficiary at a price they think reasonable?
Successful businesses will often have shareholders who may or may not be actively involved within the day to day running of the company. But if someone is investing money within the company or buying shares they will often want to know that the investment is safe. Having this kind of insurance in place with a shareholder agreement is the best way of doing this.
Examples of why you may need it
For example two people in a company will often own 50/50 split. If one of the people die the other is now left with the running of the company. Key man insurance will help inject money to help the day to day running and of course this is very important. But you now may be left with someone else owning 50% of your company. That person could of course be the wife or husband of the deceased. They may of course want to sell their half of the company. What if they sell out to someone you do not get on with. This can have massive complications to your business.
For more information on how these are set up and for any quotes please fill in the form and someone will be in touch soon.
020 7112 8844
Open 9am - 5pm Mon to Fri
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"We placed over 70 Million Pounds Of Business Protection For UK Businesses in 2013" - Jody Pearmain Director
Example Of Insurance Companies We Use
An example of companies we use
We are the leading brand in the parent company My Protect Limited founded by Jody Pearmain. For more information on Jody click his profile Linkedin Profile. Jody and My Protect Ltd has over 7 years’ experience in the business protection market and has lead the way for many years pioneering new products from providers as we go. We are based in Essex and have easy links to the Home Counties and London making face to face appointments in and around London very viable.
My Protect Ltd has grown with the business protection market. The area was highlighted to Jody some 7 years ago when there were very little interest in the market due to its size. We understood that this was a under insured market and made sure we would be in place when the business protection market grew and wanted to be at the forefront of its launch.
Now 7 years down the line, we at My Protect have excellent alliances with all the UK providers of life insurance and critical illness on both a personal and business level. This places us in an excellent position for winning business by offering the best prices followed up with an unrivalled personal service.
Our services include:
Key Person Insurance
Relevant life cover
Personal Life cover
Terminal Illness cover
Critical illness cover
We will also ensure your policies are set up correctly with the relevant Trusts where necessary and can walk you through Trust set ups and how they work and some tips gained over the years. we are happy to liaise with your accountant or solicitors to ensure they understand the policy and its set up and to also ensure it lines up with any company contracts such as “Cross shareholder agreements”.
If you would like a no obligation quote or any advice to simply understand the various products then please do not hesitate to call or e-mail us.
The Financial Conduct Authority does not regulate Trust Advice
My Protect Ltd
Key man insurance specialists. Whole of market brokers for business protection.
1 Nelson Street
Southend On Sea
My Protect Ltd
1 Nelson St
Southend on Sea
Essex SS1 1EG
Ph: 020 7112 8844
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