As a business owner, you may want to arrange corporate protection for the key employees within your firm – perhaps the key salesperson, or the IT manager without whom your business will not function properly, or you may not have considered the impact that the death or serious illness of a business partner may have if you are not protected.
Corporate protection, including keyman and partnership protection, can provide a fixed sum should the individual be unable to work, or even die. The benefit will be designed to cover the firm’s expenses in meeting any emergency costs, recruiting a replacement employee and protecting the future of the business.
If a shareholder were to pass away, the firms remaining shareholders or directors may want to purchase the deceased’s shares from their estate promptly to maintain control of their business. The same scenario also applies to partners in a firm.