What is Partnership Share Protection? What will it cost?
What happens if a Partner in your business dies?
Not only do you lose their experience and expertise but what happens to their share of the business.
Can you afford to buy their share of the business without having to take out a loan or asset selling?
Their share of the business might pass to someone who has no knowledge or interest in your business. That person might be in a position to sell the company above your head.
What can you do to protect the company?
Each Partner takes out their own life assurance policy to cover a specified amount. A written legal agreement is put in place which:
a) gives the remaining Partner(s) the right to buy the interest in the business and
b) gives the inheriting spouse the right to sell their interest to the remaining partner(s).
This is known as a cross-option agreement.
Is this expensive to put in place?
Not necessarily. The monthly premiums are based on normal life assurance rates.
For example, a 40 year old non-smoking male with no medical conditions could pay as little as £9.98 per month* for a £100,000 of cover over 10 years. You will also need to pay your Solicitor to set up the legal agreement. We can recommend one who is experienced in these matters if required.
Complete our enquiry form and one of our experienced and friendly advisers will contact you to discuss your requirements and offer you a no obligation competitive quote.
Or phone us now (office hours) on 0800 018 1315.