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Work out how to the spread cost easily between shareholders or partners

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Share Protection and Partnership Protection

Setting up Share Protection and Partnership Protection

Share Protection should be recommended to limited companies and Partnership Protection should be recommended to partnerships and limited liability partnerships.

This table summarises suitability, benefits and the type of policy required.

Business type

Who should be insured

Benefits

How to set up the cover

Limited companies

Shareholder

The remaining business owners keep control of the company (control isn’t passed onto anyone else).

The sold shares get fair value – without available capital (and a cross option agreement) the shares could be sold by the deceased owner’s family at below market value (for a quick sale).

The arrangement is tax-efficient.

Own life: each shareholder or partner takes out a plan on their own life which is written in trust for the other business owners. Each shareholder or partner signs a cross option agreement. The remaining partners use the money paid under the claim to buy the shares.

Life of another: if there are only two or three business owners, the business can take out a life-of-another plan on each of the lives of the owners, which is written in trust. The owners also sign a cross option agreement. The claim is then paid to the remaining business owners (via the trustees).

Limited Liability Partnerships

Partner

Partnerships

Partner

The remaining partner/partners keep control of the company.

Own life: each partner takes out a plan on their own life which is written in trust for the other business owners.

More on Business Protection taxation

0800 032 3962

TextDirect: first dial 18001


Business Protection Specialist Team

Option 1 – New and current applications

Option 2 – Underwriting

Option 3 - New agency set up and login queries

Option 4 - Business Protection sales team and quotes

Options 1-3, 8.30am - 6.30pm Mon - Fri

Option 4, 9:00am - 5:00pm Mon - Fri

We may record and/or monitor calls for training and audit purposes.

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Business Protection options

Find out more about the type of businesses we cover and the policies available.

More about our Business Protection options

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Calculators and tools

See all our business protection calculators available to simplify your client conversations.

Our Business Protection calculators

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LV= Business Care

Our Business Protection includes valuable telephone support for your clients and their employees.

LV= Business Care

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Business Protection support team

Our team will make sure that all your Business Protection applications are dealt with quickly and efficiently.

More about our business support team

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FOR UK FINANCIAL ADVISERS ONLY
LV=, County Gates, Bournemouth, BH1 2NF, UK