Protect Your Business with Shareholder Protection Insurance
Shareholder protection is vital to ensure business stability if a shareholder passes away or is unable to work. Learn how shareholder protection can safeguard your company and ensure continuity during challenging times.
Ready to take the next step?
We can provide a quotation from every insurer in the market for you in just one email or call. We don’t share data, and we don’t send your details to brokers, just a great, personal service that saves you time and hassle and ultimately money.
What is Shareholder Protection Insurance?
Shareholder protection insurance is a type of policy designed to help remaining shareholders retain control of the business if a shareholder passes away or becomes critically ill.
It allows for funds to be made available to buy the shares from the affected individual or their estate, ensuring business continuity and stability. This type of insurance helps prevent disputes and provides a clear plan for what happens next, giving everyone peace of mind.
Call us now and we will be able to quote you in just 60 seconds. We know you don’t want the big pitch so if you prefer, we can quote you and be led by the questions you want answered, no hard sell and no sharing of data with numerous other people.
Call 0330 818 3433
Key Benefits?
Get a quote from every UK insurer in just 60 seconds. No big pitch, no passing your data to numerous brokers, just a great personal service with no pressure.
"*" indicates required fields
How Shareholder Protection Insurance Works
Shareholder protection works by providing a lump sum if a shareholder passes away or is diagnosed with a critical illness. This payout can then be used by the remaining shareholders to purchase the shares, helping maintain control of the company and avoid any financial complications.
Learn How Shareholder Protection Works for Your Business
Who Should Consider Shareholder Protection?
Shareholder protection is ideal for any business with multiple shareholders, where continuity and stability are key concerns. It’s especially beneficial for small and medium-sized enterprises (SMEs) where the sudden loss of a shareholder could lead to significant financial instability or loss of control. This type of policy is crucial for ensuring that a business can continue operating without interference from external parties, such as the deceased shareholder’s family, who may not have the expertise or desire to be involved.
Can small businesses benefit from shareholder protection?
Why Choose Executive Life for Shareholder Protection?
At Executive Life, we offer tailored solutions that ensure your business remains secure no matter what happens.
We provide:
Tailored Coverage: Customised coverage to match the value of shares and your specific needs.
Expert Guidance: Our advisors understand the unique needs of shareholders and can guide you through setting up the right protection.
Transparent Policies: No hidden fees, just straightforward coverage designed for peace of mind.
Client Reviews
Smooth process, easy to deal with and most importantly they saved me a lot of tax by switching my policy to one that could be paid for by the business.
Recently used them for relevant life and income protection. Professional and informative.
I set up shareholder protection policies for me and my business partners through Executive Life. They found us competitive quotes and the process was swift. I would highly recommend to other company directors.
Executive Life helped me find the best deal for my life insurance policy and also my income protection policy. It was very easy and the process took no time at all - I would highly recommend them!
Very happy with the service and process I went through. They explained how the income protection policy worked and how it would be tax efficient for me through my limited company.
Real Stories: Shareholder Protection in Action
Mr Jones is the Director of Jones & Co Limited and is looking for a £1,000,000 life insurance policy. He could pay for a policy personally from taxed income, or he could pay for a relevant life cover through the company. He is a higher-rate tax payer.
The premium for both types of policy is identical and both are offered by L&G in this example. The premium for £1,000,000 cover is £85 a month and the policy will last for 20 years.
If Mr Jones needs to withdraw £85 net a month from his company to pay for the premium on a personal policy, the cost to the company would be £155.46. The increased costs take into consideration the corporation tax and dividend tax paid by the company and Mr Jones to receive a net £85.
If the premium was paid by the business via relevant life cover, then the business would receive corporation tax relief on the £85 a month premium. This would reduce the real cost to £68.85 and save Mr Jones £20,787 over the lifetime of the policy.
Find Out How Much You Could SaveShareholder Protection vs. Other Business Insurances
A side-by-side comparison to help you understand why a relevant life policy might be better for you than other options
Shareholder Protection
- Specifically covers the loss of a shareholder, ensuring control remains within the business.
Key Man Insurance
- Focuses on providing a financial safety net if a key individual is lost, but doesn’t explicitly handle ownership transfer issues.
What are the next steps?
Finding the right Shareholder Protection Insurance for you and your company can be difficult. There are twelve primary insurers, and obtaining quotations from all of them takes time.
At Executive Life, we specialise in finding the right policy for you. We will show you quotations from every insurer in the market so you can choose the right cover for you.
We will also complete all of your application documentation over the phone and save you the hassle of multiple paper application forms and endless admin. Our team will cover all of that for you.
Your Questions About Shareholder Protection Answered
Common questions asks by previous customers include:
How are the shares valued for the insurance policy?
Can the policy cover critical illness as well as death?
Ready to Secure Your Business's Future?
Take the next step to protect your business against the unexpected loss of a shareholder.
Our advisors are here to help you explore shareholder protection options tailored to your needs. Secure your business's future today.
Fill out the form above to receive a tailored quote for Shareholder Protection Insurance, or call us directly to speak with one of our advisors.
