Partnership Protection for Business

If you are in a business partnership it is important to make sure the partnership is maintained in the event of one of the partners being unable for whatever reason. There should be a partnership agreement in place which specifies what will happen in the event of death, illness, injury, retirement or other reason. One element of this is to enable the remaining partner to buy the shares from the other. Planning is important as there are other areas which need to be addressed such as preventing the partnership from being dissolved in the event of death or otherwise.
Life assurance policies allow you to plan for funds to be available which may provide cash to be used to purchase the partnership share.

The main aims of this type of protection are:

• Continuity of the business
• Providing appropriate life cover to fund the purchase of the deceased’s interest in the business
• Arranging for partners who retire, or who fall seriously ill and are unable to work
• Providing advice on a suitable agreement which will ensure the partnership continues whilst the deceased’s dependants are compensated
• Ensuring your business interests are protected against hostile parties, or inheritors who may be dissinterested