There are many things you need to consider when owning a business. You should pay attention to your partner and your business. What responsibilities each of you have, how you invest your money and what you expect to get from the business. You may not think about what could happen if your partner becomes seriously ill or dies in unforeseeable circumstances. If the shares are sold to the wrong person, you could lose your entire company. This could result in your company losing its income and the entire company. This includes job losses for all employees and compensation or redundancy payments. Partner Protection Insurance is an insurance policy that can protect you and your partner from unforeseeable circumstances. If you own a business, whether with one partner or more than one, your responsibilities and roles are usually divided between you. What happens if one of the partners is hurt? What would happen to the company, the partners’ lives and the company? Partner protection insurance covers you for any bad events that might occur, such as losing your share or the entire company. Partner protection gives you the chance to keep control of your business and not lose it. Loss of a partner can result in income loss or even the total loss of the business. This is why you should get Partner protection. You could lose not only your partner, but your entire company, and possibly your entire income source.
When purchasing Partner Protection insurance, the most important thing to remember is that it: Protects the business -> Protects both partners -> Protects your families
How does Partner Protection work for me? If a partner in your business dies or becomes seriously ill, the policy provides a lump sum that is tax-free and will be paid to the remaining partners. The money will be sent to you and other partners as long as there is a valid claim. You can use the money to pay expenses, provide wages, support the company, or purchase the partner’s share of the company. The partnership can be dissolved if your partner dies, and the company may become insolvent. Partnership Protection prevents this from happening and provides you with the funds to protect your company.
Main Benefits:
1) Provide funds for the last partner to purchase the shares of the deceased company stock
2) Protects your investment in company
3) Provides financial support to the family of the deceased partner through the shares
Partnership Protection Insurance works in the same way as life Insurance. It protects you, your family, and the business financially. It ensures that the business can continue without any disruption. It allows the remaining partner to purchase the shares of the critically ill or deceased partners and assume full responsibility for the company. This prevents the shares being sold to the wrong person, or being taken over by a competitor. This allows the family of the partner to quickly sell the shares and access the funds they need. It helps to protect the company and its remaining employees from being severely disrupted. It protects your investment and stops your money and time from being wasted. This is a significant percentage that 39% of business owners anticipate being out of business within the first 18 months after their top employees die or become seriously ill. It also highlights how important insurance coverage for partnership protection is. A Partner Protection Insurance policy is available to anyone. When purchasing Partner Protection Insurance, remember that there can be more than one partner in the company. This means you will need to have more than one policy. It is designed to protect co-owned companies. One policy is required per person within the company. This policy covers only the shares of the partner. This policy protects your company investment and protects your personal side. However, it also gives the company a lump amount after your death to protect other partners and allow them to purchase your shares.
