Keep control in the
right hands
If a shareholder or business partner dies, shareholder protection insurance funds the remaining owners to buy their shares — keeping control where it belongs.
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Explore Your Options
Whatever you need to protect, we'll help you compare the right cover.
Life Insurance
A one-off tax-free lump-sum payment for your loved ones in the event of your death.
Learn moreCritical Illness Cover
A tax-free lump sum if you are diagnosed with a serious illness like cancer, heart attack or stroke.
Learn moreIncome Protection
Monthly tax-free payments if you are unable to work due to long-term sickness or injury.
Learn moreHow Shareholder Protection Works
Value the business and each shareholder's stake
Agree on the current value of the business and each ownership share.
Take out a policy per shareholder
Each shareholder is covered for the value of their own stake.
Set up a cross-option agreement
A legal agreement gives surviving shareholders the option to buy, and the estate the option to sell.
Payout funds the share buyback
On death, the policy pays out, funding the purchase of the deceased's shares.
Key features at a glance
Keeps control with existing owners
Prevents shares passing to family members uninvolved in the business.
Funds a fair buyback at agreed value
Ensures the deceased's family receive fair value without a forced sale.
Written in trust outside the estate
Speeds up payout and keeps proceeds outside of estate duty calculations.
Reviewed as share values change
Cover can be adjusted over time as the business grows in value.
Frequently Asked Questions
What happens without shareholder protection?
Without it, a deceased shareholder's shares could pass to family members, potentially disrupting management or forcing a sale of business assets to buy them out.
What is a cross-option agreement?
It's a legal agreement giving surviving shareholders the option to buy the deceased's shares, and their estate the option to sell them, at an agreed price.
Who owns the policy?
This depends on the structure used — commonly each shareholder owns a policy on the life of the others, or the company owns policies on each shareholder.
How is the cover amount worked out?
Cover is usually based on the current value of each shareholder's stake in the business, reviewed periodically as that value changes.