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Also, should a partner suffer and survive from a critical illness but can no longer work then they may want compensating for exiting the partnership.
A partnership Protection Insurance policy will provide the company with a pre arranged scheme which will provide any surviving partners the necessary funds to buy out the deceased’s share in the company or to compensate them or their dependents.
Partnership Insurance can also be used to cover against the retirement of any partners
Here are the benefits and why it is essential to have Partnership Insurance:
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Provides arrangements to ensure that your partnership will not be automatically dissolved upon the death of a partner.
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Enables your business a certain level of continuity and to trade as normal during any transitional periods.
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Protects your company against any careless, reckless or disinterested inheritors.
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Protects your business from any competitors buying into your company or any other hostile parties.
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Avoids you having to dip into any funds which may have been allocated for other purposes to enable you to compensate the deceased’s dependents.
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