Common Shareholder Protection questions.
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What if a Shareholder suffers a critical illness?
In the event of a Shareholder suffering a critical illness, an agreement can be put into place, whereby the Shareholder sells their share to the remaining business owners.
How are minority shareholders protected?
Each shareholder can take out separate cover for themselves, with a sum assured equivalent to the value of their company shares.
Why is Keyman Insurance Important?
Keyman Insurance is important as it provides financial stability in the event of the death or long-term illness of a key person.
In the event of a Key Person claim, how would the insurance claim be paid?
The claim will be paid out as a lump sum.
Can we receive Key Person Insurance as an income, instead of a lump sum?
It is possible for Key Person Insurance claim to be paid out monthly, by opting for Key Person Income Protection. We recommend that you seek professional advice to guide you.
The Shareholder Protection Process
Working with HB Partners
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An informal introductory conversation
Your protection experts will work with you to work with you to understand your Protection requirements. We will then take you through the options available.
We will research the market for the ideal Protection product for your circumstances.
Our Expert Recommendation
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The right Shareholder Protection for you
Our experts will calculate the amount of cover required, then compare the providers offering the relevant Protection products for your needs. We will then discuss the options with you.
With your agreement, we will then proceed with an application. We will manage all paperwork and update you at every stage of the process, until completion.
Full Application
If a business partner or shareholder dies without any Protection provision in place, then their share of the business will likely pass to their estate. This could prove problematic for the business, leaving it open to
What is 3 + 5 =
Meet the Team
WHAT IS SHAREHOLDER PROTECTION?
A Shareholder Protection policy provides funds for company owners to purchase the equity of a deceased shareholder, with a suitable trust and a cross option agreement.
HOW DO YOU VALUE A COMPANY FOR SHAREHOLDER PROTECTION?
Normally this would be as a multiple of the net profit of the company, basing the Shareholder Protection Insurance cover on your proportion of the total company shareholding.
IS SHAREHOLDER PROTECTION INSURANCE TAX DEDUCTIBLE?
The premiums for the shareholder policies are usually paid by each shareholder on their own life, so this means that the insurance is not tax-deductible.
WHAT IS A CROSS OPTION AGREEMENT?
This is an agreement entered into by all shareholders to grant each other put and call options over the shares. This helps the sale of a shareholder’s share upon their death.
Frequently Asked Questions
If you have a specific question, click the button below, and we will do our best to answer this for you.
Why use us?
We don’t sell. We listen objectively and identify financial risks which allow us to put in place the best insurance policy available.
We have over 25 years' experience in the mortgage industry, offering a wealth of knowledge and the highest standards of professionalism.
We have access to technical insurance portals to analyse the best providers and policies across the whole of the market.
We provide expert professional advice to homeowners and first time buyers on mortgages, remortgages and buy to lets.
Where necessary, we have direct access to senior underwriters in some of the biggest insurance providers in the UK.
We are qualified to advise you on your equity release requirements.
Related to Shareholder Protection
What our clients say
Mark Culham
Adviser & Co-Founder
Steve Jascourt
Adviser & Co-Founder
"I get satisfaction about having ‘real’ conversations with people about why having the right cover in place is so important. I also take a lot of comfort from knowing that our clients are covered should the worst happen."
“Arranging mortgages for my clients impacts positively on their lives, and gives me immense job satisfaction. When a client returns for repeat business, or refers family and friends to me, I know that I have done a great job.”
