Directors' or partners' share agreements may provide for the remaining directors to purchase the shares of other shareholding directors should they die. However there is a risk that the remaining directors may not have sufficient funds to hand when a fellow director passes away unexpectedly.
One solution to this is to take out life cover as a source of funding.
To arrange such cover requires the understanding and agreement of all concerned. It will also require some careful calculations to determine how much cover is required. However, it will be a comfort to all directors or partners of a business to know that their own or a colleague's death will leave the other directors with sufficient support to carry out the terms of their shareholders' agreement.
This type of policy can also include critical illness for protection in the event that a director or partner is forced to leave due to illness.
THE PLAN WILL HAVE NO CASH IN VALUE AT ANY TIME AND WILL CEASE AT THE END OF THE TERM. IF PREMIUMS ARE NOT MAINTAINED, THEN COVER WILL LAPSE.
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Value | Move | % |
FTSE 100 | ||
6658.97 | 33.03 ![]() |
0.498 ![]() |
FTSE 250 | ||
21312.65 | 254.93 ![]() |
1.211 ![]() |
FTSE 350 | ||
3817.69 | 23.83 ![]() |
0.628 ![]() |
FTSE All Shares | ||
3795.06 | 23.72 ![]() |
0.629 ![]() |
Dow Jones | ||
31961.86 | 424.51 ![]() |
1.346 ![]() |
Nasdaq | ||
13597.966 | 132.768 ![]() |
0.986 ![]() |
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Read moreCONTACT US
Parklands Financial Advisers
52 Pinbush Road
Lowestoft
Suffolk
NR33 7NQ
T: 01502 531 633
Email Us
The guidance provided within this website is subject to the uk regulatory regime and is therefore primarily targeted at consumers based in the UK.
Parklands Financial Advisers is Authorised and Regulated by the Financial Conduct Authority.
Parklands Financial Advisers is entered on the Financial Services Register (www.fca.org.uk/register) under reference: 710277.
A summary of our internal complaints handling procedures for the reasonable and prompt handling of complaints is available on request and if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service at www.financial-ombudsman.org.uk or by contacting them on 0800 023 4567.
Registered Address: Glebe House, Toad Row, Henstead, Beccles, Suffolk, NR34 7LG.
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