An insurance plan to help partners and shareholders buy a deceased or terminally ill persons share of the business.

We can advise Shareholder & Partners on arranging a suitable Protection Plan.

How it works:

  • 1. Each shareholder/partner starts a Life Cover or Life & Critical Illness Cover policy. You can pay your own premiums, or the premiums can be paid by your business (which would be taxable on each individual director or partner)
  • 2. Each policy is put in trust for the other shareholders/partners.
  • 3. A written contract will be entered into by each shareholder/partner. This is known as a 'Cross Option Agreement'. It's a reciprocal arrangement that guarantees:
  • o The remaining shareholding directors/partners can exercise the option to purchase the shares from the   deceased shareholding director's/partner's estate;
  • o The deceased person's estate has the option to sell the shares to the remaining shareholding directors/partners