Share Protection

Often the death of a shareholding director can cause severe financial strain to the remaining director(s) of a trading company. Share Protection provides the wherewithall to allow the remaining director(s) to continue trading without the financial burden of compensating the deceased director's estate.

Example: If there are 3 directors a 'round robin' cover is instigated.

  • Director A takes out cover on his/her own life written in trust for the benefit of Directors B and C.
  • Director B takes out cover on his/her own life written in trust for the benefit of Directors A and C.
  • And lastly, Director C takes out cover on his/her own life written in trust for the benefit of Directors A and B.
If Director A should die prematurely, then the policy will provide Directors B and C with the funds to purchase the shares from Director A's estate.

It is often difficult to place a value on a company for share protection purposes, as often it is the directors themselves that provide the added value. Tyrrells Financial Services Limited will be pleased to offer guidance in this area.

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