It takes away the stress of having to try and find the money for a buyout, and the potential issue of having a next-of-kin come in and take over their loved one’s business interests, which may not be on the same page as yours!
Shareholder protection offers several benefits –
- It includes a buy-sell agreement, with a lawyer’s involvement, that sets out what will happen if a business owner or shareholder exits the business due to death, terminal illness, or a disability.
- By insuring the business owner or shareholder for the value of their shares, you do not have to suddenly find or borrow the money for a buyout.
- It enables the business to keep running – especially if you suddenly lose expertise in a specific area such as finance or business development.
- It takes away the stress of what to do from spouses or other next of kin not actively involved in the business, enabling them to deal with the death or care for their ill or disabled loved one.
Shareholder protection is a highly specialised area that requires the involvement of an experienced financial advisor. ICIB Brokerweb has this expertise with brokers who not only understand how the insurance works but also how SMEs operate and what is important to consider.