What is Co-Directors Insurance?
The untimely death of a Co-Director can have a major impact on your business. Having Co-Directors Insurance in place goes a long way in helping the company get back on its feet by providing funds to the other Directors of the business so they can purchase the shares of the deceased from their next-of-kin who may have inherited them. A lot of time family members of the deceased Company Director may not wish to be part of the company as they may neither have the interest or the business acumen to be part of the business so they may welcome the chance to sell their shares.
How Does Co-Director Insurance Work?
You can take out Co-Director Insurance at any stage during the lifetime of a company. You pay a regular premium, the costs of which is based on the cover which is required and the value of the shares of the Director. If the Director dies, a lump sum is paid by the insurer which will enable the insured party to purchase the shares of the deceased Director from their next-of-kin.
Is Having Co Directors Insurance Worth it?
Co-Directors Insurance offers great piece of mind. In the case of the untimely death of a Company Director, Co-Directors Insurance can provide a lump sum that will allow the insured party to purchase company shares from the next-of-kin of the deceased Directors family. This is important because if the deceased party was a majority shareholder, the company could lose control of the business if the deceased Directors family take part in the running of the firm. Other Directors may not feel happy in circumstances like this as they may feel the family do not have the knowledge or expertise to add value to the business. IFC Finance offer a number of ways for you to protect your business. Other plans we offer include Investment, Partnership Insurance, Keyman Insurance and Pension Term Insurance. Contact us for a Free Initial Discussion about setting up Co-Directors Insurance.
Contact us IFC Finance today at:
• Tel: 01-6601 016
• E: firstname.lastname@example.org