Do you own a business with someone else? Do you know what happens to them if they die or get too sick to work?


Can you answer these questions in sequence?…

1. Do you own shares in your business?
2. Do you have personal life insurance/mortgage protection etc.?
3. Do you know what would happen to your shares or your fellow director(s) shares if they passed away tomorrow?

If you answered, yes/yes/no….then you may have a problem, a problem that is inconsistent with your own financial management of your affairs in your personal life.

Most business owners do not have a good response to question 3. Questions or comments that this throws up include:

My fellow director(s) would buy my family out/or I would buy their family out.
Does the company or you have the cash buy out shares that may be worth say €250,000?

Would the deceased family members come into the business as shareholders?

..Which could be a child with no knowledge of the business or a spouse that will offer no executive function (plus they will be grieving)

This is a difficult situation, as ironically most of us have personal life insurance products to cover our death, but don’t know that there are life insurance products to cover a business if a director/shareholder passes away!

This is called Shareholder Protection:

✔️It is cheap (just basic life cover)
✔️It can be paid for by the company
✔️It removes the concern and potentially difficult scenarios above that could damage you personally and business-wise