- Neither your death, nor the death of one of your business partners, should threaten the stability of your company.
- You and your business partners would prefer to avoid arguments about share ownership.
- You want to be prepared for the costs related to the appropriate compensation to the heirs.
Agree with all three of these statements? If so, Omni Care Biz1 is the perfect death insurance policy for your needs.
How does this worry-free life insurance work?
A typical example
14 years ago, Hugo, Anne and Patricia started a limited liability company together. Hugo and Anne each contributed 25 percent of the capital, while Patricia contributed 50 percent.
When Patricia unexpectedly passes away, all her shares are inherited by her son Thomas. His vision of the future of the company is very different to that shared by Hugo and Anne, and he wants to fundamentally change the way it works. Naturally, they disagree – however, Thomas owns half of the shares, and the two other business partners do not have the resources to buy him out. This is the starting point for a great deal of arguing...
A two stage solution
A shareholder agreement with a purchase option, linked to an Omni Care Biz death insurance policy offers a solution in 2 steps.
In the presence of a notary, sign a shareholder agreement with your business partners that includes what is known as a call option. This requires the heirs to sell their inherited shares to the surviving business partners. In this way, you can ensure that your shares are retained by the original business partners in the event that one of you dies.
Each shareholder/business partner takes out a death insurance policy on the life of the other business partners/shareholders, naming themselves as a beneficiary. If one of the insured business partners passes away unexpectedly, the surviving partners can use the insured capital to purchase their shares.
Prepared for what the future may bring at a moderate cost
Have you and your business partners stopped to think about the impact should one of you die? Naturally, you don't have much time for that sort of thing as your business takes all your attention. But that's exactly why you should protect all your hard work and safeguard it now for the future.
Your company pays the premiums for this death insurance in a tax-efficient manner.
Peace of mind is priceless, and so is good advice
Your broker will be happy to explain the options available to you and your business partners.
You can also ask your broker for a quotation in order to find out your exact premium, adjusted to your personal situation.