FINANCIAL PLANNING

Key Person and Shareholder
Protection for Businesses

Key Person Insurance

Every company has key employees or directors who are integral to the success of the business — so their unexpected loss or incapacity may have a huge impact on viability. Many companies protect against this risk with a policy that can deal with the financial challenges caused by such an eventuality. This could be an insured lump sum in the event of their death, or diagnosis of serious illness.
Glennon can guide you through this process and help your company set up a policy to protect against such a sudden occurrence. We will make sure the policy meets the immediate needs of your business, so you can overcome the loss or incapacity of your most valuable personnel.

Shareholder / Co-Director Insurance

If a company has a number of shareholders with significant ownership, succession planning and protection of the business is essential. Glennon can help you decide whether you need a Shareholder Protection Policy by asking the right questions:
If a significant shareholder dies, is the company able to buy the deceased’s shareholding to remunerate their family? Does the company have sufficient cash reserves or access to borrowing to buy the shares? Would the company have to sell assets to purchase the shares? And would this significantly impact the business as a result?
A life assurance policy with a legally binding buy/sell agreement can address these complications cleanly and affordably. If a shareholder or co-director dies, the company will have the money to buy the shareholding back and their family will receive the monetary value of their loved one’s stake. This removes the pressure of seeking funding or selling assets to satisfy the family of deceased’s shareholding.

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If you need an insurance solution, let’s talk!