Corporate Co-Directors Protection

The death of a company director can have a serious impact on the surviving directors and the deceased’s successor. Ideally, if there is sufficient cash in the business, the company would buy the shares of the deceased director from the deceased’s estate.

Corporate Co-Directors Protection ensures that this cash is available. In this case, the company owns the policies and each of the director’s is the life assured. If a director dies, the company would then have the cash to enable them to buy back the shares from the deceased’s estate. The company pays the premiums which are not tax deductible.

There are both legislative and taxation issues that need to be examined to ensure that a Corporate Co-Directors Protection arrangement is appropriate. Any company seeking to acquire this kind of business protection will require the assistance of legal and taxation advisors.