Key Man Assurance
Businesses should consider protecting their most important asset – their key people. Death of a key director in the business could seriously affect profitability. A lump sum payable to the business on the death of a key person may help to recruit a suitably skilled replacement as well as bridging some of the lost profits.
Co-Shareholder Assurance
Problems also arise on the death of a shareholder in an owner managed business. What happens to the deceased shareholders investment, have the remaining shareholders sufficient capital to promote the deceased holding. Many would be well advised to effect life cover on major shareholders and an appropriate Cross Option agreement to ensure existing shareholders retain the company, and the beneficiaries of the deceased shareholder receive fair value for the shares.