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What is Shareholder Protection Insurance?

What is Shareholder Protection Insurance?

If a shareholder becomes seriously ill or indeed dies, this protection will provide a lump sum of money to the remaining shareholders.

 

On death, the remaining shareholders then have the money to buy the deceased’s shares from his estate.

In the event of ill health the shareholder may wish to retire from the business, so the policy gives the remaining shareholders the money to buy his shares from him.

Therefore, this type of insurance is only required for companies with two shareholders or more.

This article is sponsored by Oviso®


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