Shareholder Insurance is Life, Critical Illness and Disability Insurance to fund a shareholders agreement and allow the surviving partners to continue operating the business uninterrupted.
In short, the business will have the funds to buy out the shares of a critically ill, disabled or deceased shareholders estate.
A shareholders agreement outlines the various rights and obligations of the shareholders to each other. It will also outline how a shareholder can exit the agreement or what will happen in the event of critical illness or death.
The use of life insurance and health insurance to fund these obligations is a common and effective way to manage this risk.
It’s critical for shareholders’ agreements to address the possibility of a disability, illness or death. If shareholder insurance is not in place to fund their agreement – the wishes of the shareholders could end up being decided by the court.
Our team is based in Vancouver B.C. and has experience in setting up life and health insurance to fund shareholder agreements.
We would be happy to work with you to create a tailored insurance solution. 1.888.498.5288