Share protection through life assurance

Directors' or partners' share agreements may provide for the remaining directors to purchase the shares of other shareholding directors should they die. However there is a risk that the remaining directors may not have sufficient funds to hand when a fellow director passes away unexpectedly.

One solution to this is to take out life cover as a source of funding.

To arrange such cover requires the understanding and agreement of all concerned. It will also require some careful calculations to determine how much cover is required.

However, it will be a comfort to all directors or partners of a business to know that their own or a colleague's death will leave the other directors with sufficient support to carry out the terms of their shareholders' agreement.

This type of policy can also include critical illness for protection in the event that a director or partner is forced to leave due to illness.

!

THE PLAN WILL HAVE NO CASH IN VALUE AT ANY TIME AND WILL CEASE AT THE END OF THE TERM. IF PREMIUMS ARE NOT MAINTAINED, THEN COVER WILL LAPSE.

London Stock Exchange

Value Move %
FTSE 100
8311.76 10.14 0.122
FTSE 250
20949.04 -24.41 -0.116
FTSE 350
4586.46 4.14 0.09
FTSE All Shares
4542.56 4.15 0.091
Dow Jones
43914.52 -234.039 -0.53
Nasdaq
19902.842 -132.053 -0.659

Currencies

Value Move %
0
1.21 -0.004 -0.337
GBP/NOK
14.16 -0.06 -0.42
0
13.963 -0.034 -0.243
GBP/USD
1.267 -0.008 -0.654

Biggest Movers

Value Move %
SEGRO
795.6 +52.4 +7.05
easyJet
477.8 -18.1 -3.65

0141 237 8140
Studio 39,
Sir James Clark Building,
Abbeymill Business Centre, Paisley PA1 1TJ.

enquiries@stclairfp.co.uk