Share & Partnership Protection:

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Share and Partnership Protection

Our Share and Partnership Protection offers a safety net if a business owner dies. It also covers a diagnosis of a critical illness (like cancer). It means the remaining owners can keep control of their company.

The cover your recommend depends on the business:
  • Share Protection – for limited companies. Each shareholder takes out Life insurance for the benefit of their fellow shareholders. Standard Critical Illness Cover can be included
  • Partnership Protection – for partnerships and limited liability partnerships. Each partner takes out life insurance for the benefit of their fellow partners. Standard Critical Illness Cover can be included.

Product Profile

Details on eligibility, cover options, limits and additional benefits can be found in the Product Profiles.

Business Protection Life Insurance Product Profile

Business Protection Life & Critical Illness Product Profile

Key features of Critical Illness cover

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  • Covers up to 87 conditions, including Alzheimer's , heart attack and permanent disability. A full list of the conditions covered can be found in the Business Protection Key Features Guide.
  • Flexible types of cover - level, inflation-linked or decreasing.
  • Children's cover included at no extra cost.
  • Term of 5 to 50 years.
  • Pays a cash Lump sum on diagnosis.
  • Choice of premium - reviewable or guaranteed.
  • Waiver of premium available.

Important information

Keeping your client’s business secure is important. If a shareholder or business partner dies or becomes critically ill, your client will want to know they’re in safe hands. And that’s where our cover can help.

Here are some important things you should know about our Share and Partnership Protection:
  • For our Standard Critical Illness Cover, we’ll only cover the conditions as outlined in our Business Protection Key Features guide.
  • There is no cash value, at any time.
  • If your client chooses level cover, it won’t keep up with inflation and could buy less in the future.
  • Our Enhanced Children’s Cover policy is not offered as an option on Business Protection Life and Critical Illness Cover.
  • If your client stops paying their premiums, they cover may stop.
  • Reviewable premiums may increase or decrease during the term of the policy. The premium is guaranteed not to change for at least the first 5 years of the policy.

Cover Options

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Level, inflation-linked, decreasing cover

Giving your client flexible cover is important. So with three options, you can offer tailored protection:

  • Level cover – the premium and cover is fixed.
  • Inflation-linked cover – cover increases with inflation. The premium increases with inflation x1.5.
  • Decreasing cover - cover goes down each month, but the premium stays the same.
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Guaranteed increase options

Your client can increase their cover in certain circumstances - like if their employees get married, enter a civil partnership or have/adopt children. If the amount of cover changes, the premium will too.
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How much cover to recommend

Surviving shareholders will need enough money to purchase the lost business owner’s shares. But it can be difficult to value a company. If you don’t have an accountant’s valuation, it’s worth considering the following as a starting point to calculating cover:

  • Net profit from the last 3 years
  • Company assets – like property, vehicles and specialist equipment
  • Price earnings ratio (assuming future performance)

The amount of cover you recommend should generally equal the market value of each owner’s share.
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Need help setting up the sum assured?

Our business valuation calculator offers a practical guide for doing just that.

Setting up cover

The way you set up cover will depend on your client’s business. You should recommend Share Protection to limited companies and Partnership Protection to partnerships and limited liability partnerships.

For more information, including cross option agreements and premium equalisation, view our Partnership Protection guide and Share Protection guide.
Business typeWho should be insuredBenefitsHow to set up the cover
Limited companies

Limited Liability Partnerships

Partnerships
Shareholders


Partners/Members



Partners
The remaining business owners keep control of the company (control isn’t passed onto anyone else).

The deceased's estate can sell their shares at fair market value. Without a life insurance backed arrangement (including a cross option agreement) the future of the business and the possibility of the estate being treated equitably can be thrown into doubt.

The arrangement is tax-efficient.
Own life: each shareholder or partner takes out a plan on their own life which is written in trust for the other business owners. Each shareholder or partner signs a cross option agreement. The remaining partners use the money paid under the claim to buy the shares.

Life of another: if there are just two business owners, they can take out life-of-another plans on each other. The owners also sign a cross option agreement. The claim is then paid to the remaining business owners who use the proceeds to purchase the deceased’s shares.

Free business support for your clients

We’ve designed a 24/7 support network just for your clients. It offers legal, tax and VAT-advice – at no extra cost.

Business legal advice

We’ve got legal experts available when your clients need it.

Support covers areas including:

  • Employment law and tribunal claims.
  • Health and safety law and requirements.
  • Disputes, including tenancy and debt recovery.
  • Commercial and contractual disputes.
Learn more about our Business Care line.

Business tax and VAT advice

With business tax and VAT advice, there’s a team of professionals here to help your client.

A team of accountants and ex-HMRC employees are available to advise on areas including:

  • Tax and VAT relief.
  • Completing a self-assessment return.
  • Current and changes to tax rules.
  • Dividends paid from limited companies.
  • Receiving a tax investigation notice.

Advice is available 9am-5pm, Monday-Friday.
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LV= Doctor Services

Your clients and their spouse/partner* get more than Business Protection. We offer Doctor Services, at no extra cost. This is particularly useful to businesses who want to support the health and wellbeing of their employees.

They can access six medical services by phone or app:

  • Remote GP 24/7 – Unlimited consultations with a UK doctor available by phone or video.
  • Prescription services – Get a private prescription without the need for your client to visit their local GP.
  • Remote physiotherapy – Up to five free sessions** with a trained UK physiotherapist and receive a bespoke treatment plan through video consultations. 
  • Second opinion – Check a diagnosis and get advice on treatment options with a UK medical specialist by video or face to face consultation.
  • Remote psychological services – Up to five free sessions** of mental health support including counselling and Cognitive Behavioural Therapy from a network of highly trained therapists. 
  • Discounted health MOTs – Benefit from 25% off health MOTs - a service that provides an assessment of overall health, identifying any risk and areas of improvement.

*Spouse, civil partner or person with whom the policyholder lives with as a partner and at the same address.
**The five sessions limit is split between the policyholder/life assured and partner/spouse.

Contact Phone

Let's talk

0800 032 3962

9am - 5:30pm Mon-Fri

TextDirect: first dial 18001. We record and monitor calls for training and auditing.