PARTNERSHIP LIFE ASSURANCE

The death or critical illness of a business partner can have a catastrophic financial impact on the remaining partners. Imagine how your partnership would fund buying out a deceased partner's share of the business, besides the financial effects of a long term reduction in fee income?

Each partner therefore should consider the need to arrange a life insurance policy with cover equivalent to the value of their share in the business. The proceeds are designed to be paid in the event of their premature death to the remaining partners, according to a business trust wording, so that they have sufficient funds to buy out the deceased partner’s share.

Critical Illness cover may also be available to provide potentially valuable extra protection against major illness or disabilities.

These Insurances are based on an assessment of the health of an applicant for previous or existing medical conditions and you should refer to policy documentation and seek advice in order to understand what the policy does and does not cover before making an application.