Shareholder Protection

Shareholder Protection

Shareholder protection insurance is designed to ensure that the aftermath of a shareholder’s death is as smooth and stress free as possible. It involves writing up a series of legal agreements that set out how shares are to be managed if a stakeholder passes away.

Either the fellow shareholders or the company as a whole takes out insurance policies on the lives of each shareholder. Should a shareholder die, policy pay-outs can be used to purchase the shares of the deceased holder.

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