What was the situation?
I was contacted by a male and female duo who owned a growing business together that was getting more successful by the day.
As the business grew, they realised they were in need of some shareholder protection insurance.
What was the issue?
The clients had no protection insurance in place. This meant they were leaving themselves open to extensive financial debt should one of them fall critically ill or pass away. As both clients had their own family’s to protect, it was essential for me to find them the right cover, comprehensive enough to ensure both clients, their family’s and the business was protected in the long term.
What was the process?
I started with a zoom call to provide some advice to the clients surrounding shareholder protection and key person insurance. As the business grows, protection policies like these are critical for business owners as their profiles raise and profits increase.
What was the solution?
As founders and owners, the most suitable solution for the clients was to write their life insurance into a business trust. With extensive experience in doing this, I set the clients up with their trust and introduced them to an experienced lawyer who was very familiar with circumstances of this nature. The lawyer then suggested a cross option agreement should be put in place which ensures that if one partner dies, the other is legally bound to buy the partners shares from the family out of the life insurance lump sum pay-out.
The clients were thrilled with the service they received from me. So much so that I am now looking at personal protection insurance for them both including executive income protection and relevant life cover.
Lending solutions with LDN Finance
Are you a business owner looking for a protection insurance to cover you and your key people? At LDN Finance, our extensive panel of insurers mean that we can comprehensively assess your requirements, and find an insurer who will bespoke a policy to cover your needs.
Contact us to speak to our of our protection advisers today.