The death of a partner can affect a business in different ways. If there is no partnership agreement in place then the partnership could be dissolved in law. If a partnership agreement exists and the partnership is not dissolved, then the surviving partners would become liable to the deceased’s estate for their share of the partnership.
With Partnership Protection, each partner takes out a policy on their own life, in trust for the other partners. Upon the death of a partner, the proceeds of the life policy would then become payable to the surviving partners, enabling them to buy out the deceased’s next of kin.