If you’re involved in a business partnership or you’re a director of a limited company, have you ever considered what would happen to your shares if you die?It’s probably time you did.
The fact is, unless you take steps now, your next of kin could end up having to take your place in the business, if your business partners can’t raise the funds to buy your shares.
Now in some cases that might be desirable, but in most cases it wouldn’t be.
A life insurance policy can solve this issue. A policy can be put in place for the value of your shares which, should you die, would make funds available for your business partners to buy your shares from your next of kin.
And here’s another thing to consider. If you’re a company director, you can arrange your personal life insurance in such a way that the premiums are paid by the company. The benefit of this is that if you are a higher-rate tax payer, a £100 per month premium actually costs you £140, but, under current regulations, paying it from your limited company means you get relief for the premium against your corporation tax. In effect, this only costs £80 per month and the sum assured is paid out to your next of kin.
For a more detailed discussion about shareholder protection or other aspects of insurance in your business, please get in touch with James from BB Mortgages on 01636 674455 or firstname.lastname@example.org