The Under-utilised Life Insurance Policy Available to Company Directors
Life Insurance Available Company Directors
Business leaders can avail of a life insurance policy called Corporate Company Directors Insurance. This policy if different than an individual life insurance policy on a monthly basis. This policy is paid for directly by the business. Irish Tax and Customs has written about these policies.
In the unfortunate event of the premature death of a business leaders before retirement, Corporate Company Directors Insurance policies helps. It pays out a pre-agreed sum to the business. This policy pays out and can be used to buy back the shares at a pre-agreed price. The price is set by the deceased employee’s estate or family by way of a ‘Buy and Sell’ agreement.
This type of policy adds great value to not only the estate of the director and the company but it also avoids any potential conflict. This allows for the quick and smooth transition of assets. Many company stakeholders and leaders are unaware that this form of life insurance is available to them.
It is important not to confuse this policy with that of Keyman insurance. The levels of protection offered by the policies mentioned above are very different. Where the Keyman policy is written solely for the company’s benefit, a Corporate Company Directors Insurance policy provides great benefits to both the business and the director’s estate.
For more information and a personalised report tailored specifically for your company, contact Oomph today.