FinTech company
Our client had grown quickly over the 4 years they had been trading. Now was the time to insure the value they had built.
Client: FinTech company
Location: London
Service: Shareholder Protection
Description
Our client was a limited company with 7 shareholders. The company had not addressed its shareholder protection requirements, leaving the shareholders vulnerable in case of the death or critical illness of one of their shareholders. The shareholders decided to take action and protect themselves by taking out shareholder protection life insurance.
Key Challenges
The main challenge was to find an appropriate life insurance policy that would meet the needs of the shareholders given the high value of the company. The shareholders had different shareholdings, so the policies were for different sums assured, with 2 shareholders requiring very high sums assured.
Outcome
The insurance broker was able to find a suitable policy that met the needs of each shareholder. The policy provided a lump sum payment to the surviving shareholders in case of death of one of their shareholders, which would enable them to buy the shares from the deceased shareholder’s estate. The insurer agreed to provide coverage even given the large sums assured by reviewing the company financials with their reassurers.
As a result, the shareholders were able to protect themselves and their families from financial hardship in case of unforeseen circumstances. The insurance provided peace of mind and security to the shareholders. The successful outcome highlights the importance of addressing shareholder protection requirements and working with an experienced insurance broker to ensure that the policy meets the unique needs of the shareholders.