|
|
Shareholder
Protection |
Keyman
Protection |
Partnership
Protection |
|
Reason >
|
Provides a lump sum of money for the remaining shareholders to buy the lost shares from the deceased / critically ill shareholder enabling the remaining shareholders to keep control of the company and will give the deceased shareholders dependents cash rather than shares.
|
Provides a lump sum of money upon the critical illness or death of a key worker. This money can be used to absorb any drop in turnover / profit or can be used for recruitment / re-training purposes.
|
Provides a lump sum of money with which the remaining partner(s) can use to buy out the shares from the critically ill or deceased partner.
|
|
Level of Cover >
|
An agreed valuation of the shareholding.
|
Enough to cover any loss of profits, training / recruitment costs and or any loan values.
|
An agreed valuation of the value of the companies shares.
|
|
Application >
|
With a cross option agreement, a life and critical illness cover policy on ’Own Life’ written in trust to benefit the remaining shareholders.
|
Life and critical illness cover policy written under a ‘Life of another’ basis.
|
With a cross option agreement, a life and critical illness cover policy on ’Own Life’ written in trust to benefit the remaining partner(s).
|
|
Premiums >
|
The shareholder will pay their own premiums but can increase their income to cover this amount.
|
The company will pay the insurance premiums.
|
Each partner will pay their own premiums but can draw extra money from the company to cover this amount.
|
|
Tax Info >
|
Premiums are not tax deductible but any claim is not liable to taxation due to it being an ‘Own Life’ cover policy.
|
Usually tax can be relieved on the premiums but any claim is treated as taxable.
|
Premiums are not tax deductible but any claim is not liable to taxation due to it being an ‘Own Life’ cover policy.
|
