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Highly rated by our clients on reviews.co.uk

Shareholder Protection

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What is Shareholder Protection Insurance?

Shareholder protection insurance provides your business with a cash lump sum, in the event of the death or critical illness of a shareholder.

The lump sum gives the remaining shareholders the right and finances to buy back the shares, so they can keep control of the business and trading can continue as normal.

A shareholder protection pay out can also give the deceased shareholder’s family, or the shareholder themselves the opportunity to monetize the shares in the business.

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Takes approx. 60 seconds
£
/ /

What is Shareholder Protection insurance?

Shareholder protection insurance provides your business with a cash lump sum, in the event of the death or critical illness of a shareholder.

The lump sum gives the remaining shareholders the right and finances to buy back the shares, so they can keep control of the business and trading can continue as normal.

Shareholder protection can also give the deceased shareholder’s family, or the shareholder themselves the opportunity to monetize the shares in the business.

Compare Top UK Insurers
Unbiased Quotes
Takes approx. 60 seconds
£
/ /

What are the policy options?

Individuals take out a personal shareholder insurance policy

The individual takes out his or her own life shareholder insurance, which will last until retirement age. Premiums will be charged to the individual shareholder and be paid from post-tax income, therefore resulting in no tax relief.

Premium equalisation

It is important to take into account any differences between shareholders, such as age and health issues. This could result in older shareholders having to pay more for a lower level of protection. Equalisation ensures that HMRC do not view the policy as a ‘gift’ to younger employees or those with a smaller share in the business. Equalising means that the cost of insurance is divided equally between shareholders.

The business creates shareholder protection insurance policies on behalf of their employees

The company creates a policy for shareholders with the insurance premiums being paid for by the business. Therefore, shareholder protection is seen is a deductible business expense for corporation tax. Furthermore, it is regarded as a benefit in kind for the shareholders, so will be taxed accordingly.

For both policy options, it is written into trust for the benefit of the remaining shareholders, and upon serious illness or death the insurance company will pay out to the other shareholders.

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About Us

We are a dedicated team of financial advisers, with years of experience in guiding our clients to a solution that meets their specific needs. We specialise in helping both employed and self employed individuals, as well as business owners on a variety of solutions, which range from life insurance, income protection insurance, keyman insurance and shareholder protection insurance.

The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.

Black Lion Insurance & Black Lion Wealth are a Trading Style of PRG Protect Ltd

PRG Protect Ltd: Registered in England & Wales, No. 08286239.  Registered Office: 51 The Parade, Cardiff, South Glamorgan, Wales, CF24 3AB