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Protect Your Business from the Loss of a Shareholder
How Does it Work? 1.The owners of the business enter into a shareholder agreement, which sets out all of the terms, conditions, rights and values associated with the disposition of the shareholders’ interests. 2.They then purchase a Universal Life policy to fund the agreement. The policy can be set up in various ways depending on the needs of the shareholders. 3.When a shareholder dies, the death benefit is used to transfer the deceased’s interest in the company to the surviving shareholder(s). 4.The deceased's estate receives the proceeds of the disposition which is distributed to the heirs according to the terms of the will. Everyone Benefits The death of a shareholder has a significant impact on the remaining shareholders, the business itself, and obviously on the family of the deceased. By entering into a Buy/Sell agreement, all three parties benefit. 1. The business benefits by the reassurance provided to the creditors, employees, investors and customers that business will proceed as usual. 2. The surviving shareholders retain full control of the business with out interruption or outside interference. 3. The family of the deceased gets a measure of financial security and liquid assets that can be invested for future income. Using Universal Life to fund a Buy/Sell agreement is significantly cheaper than selling corporate assets, borrowing the needed funds, or using surplus corporate cash. To learn more about how you can help protect your business, give us a call at 1-877-628-5762, or send us an e-mail at info@getcovered.ca. We would be happy show you how using Universal Life to fund a Buy/Sell agreement can help you |
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Copyright (c) 2007. GetCoverd.ca. All rights reserved.
Copyright (c) 2007. GetCoverd.ca. All rights reserved.
The information contacted herein is for Canadian residents only
and does not constitute an offer to sell or a solicitation
in any jurisdiction, in which manulife securities or its advisors are not appropriately licenced or registered or
where any product or service is not eligible for sale. details are available on request.
This website is not meant to provide legal or account advice. As each situation is different you should consult your own
professional advisor for advice based on your specific circumstances.
Manulife Securities and the block design are registered service marks and trade marks of
The Manufacturers Life Insurance Company and are used by its affiliates including Manulife Securities Incorporated.
Manulife Securities incorporated is a member cipf.
in any jurisdiction, in which manulife securities or its advisors are not appropriately licenced or registered or
where any product or service is not eligible for sale. details are available on request.
This website is not meant to provide legal or account advice. As each situation is different you should consult your own
professional advisor for advice based on your specific circumstances.
Manulife Securities and the block design are registered service marks and trade marks of
The Manufacturers Life Insurance Company and are used by its affiliates including Manulife Securities Incorporated.
Manulife Securities incorporated is a member cipf.