Client stories

Shareholder protection

Protecting the working owners of a security business

A security business had two working shareholders alongside outside investors. The working owners wanted a plan that would help the survivor buy the other’s shares following a death, while providing funds for the deceased owner’s estate.

We recommended shareholder protection structured around those two owners, with each owning a policy on the other’s life and a cross-option arrangement to support the intended share purchase. The advice took account of the wider ownership structure, rather than treating every shareholder’s needs as the same.

Shareholder protection

Planning ahead for two equal business partners

The two equal owners of a physical education business wanted the surviving partner to have the means to buy the other’s shares following a death.

We recommended cover based on each owner’s share of the agreed business valuation, alongside business trusts and a cross-option arrangement. The aim was to give the survivor a way to fund the purchase and the family a route to receive value for the shares.

Shareholder protection

Looking at the whole picture for a nursery business

For the owners of a nursery business, protecting their shares was only part of the picture. The business also had a commercial mortgage, and its holding-company structure needed to be considered.

We recommended separate shareholder and business loan protection arrangements. Each had a clear purpose: funding a share purchase following an owner’s death, and providing money to help repay the business borrowing.

Shareholder protection

Key person cover was in place—but what about the shares?

A business with a wider group of investors already had key person cover arranged through Clearbrook. In a subsequent review, we identified a separate question: how would either of its two working owners fund the purchase of the other’s shares following a death?

The existing cover was intended to support the business financially. It did not itself provide an arrangement for the surviving owner to buy the deceased owner’s shares.

We proposed shareholder protection focused on those two owners, alongside a potential cross-option agreement. Before finalising the structure, we requested the company’s articles and any shareholders’ agreement so the proposed arrangement could be considered alongside existing transfer and valuation provisions.

This example describes a proposal made following a review. It does not represent an implemented shareholder protection arrangement.

Business loan protection

Protecting a nursery’s commercial mortgage

A nursery business needed to consider how its commercial mortgage would be repaid if either owner died.

We recommended decreasing life cover with an initial amount matched to the outstanding mortgage and a term aligned with the remaining loan period. Separate shareholder protection addressed the ownership of the business, so the borrowing and share-purchase needs were considered individually.

Relevant Life cover

Reviewing cover as plans change

A metalwork business needed to revisit an owner’s existing Relevant Life cover. The review identified a need for more cover and a longer term to reflect revised retirement plans.

We recommended an increased cover amount and a term aligned with those plans, comparing suitable replacement options and making clear that existing cover should remain in place until the replacement had started.

Relevant Life cover

Making room for individual family wishes

A digital services client wanted Relevant Life cover arranged through two separate trusts.

We recommended two policies to reflect that preference and explained the additional cost compared with a single policy. The recommendation balanced price with how the client wanted the cover structured.

Relevant Life cover

Choosing predictable premiums

A machinery business wanted company-funded life cover with predictable costs.

We compared the options and recommended guaranteed premiums. A lower initial price linked to ongoing participation in a wellbeing programme did not suit the client’s preferences, so the recommendation focused on the cost structure they were comfortable maintaining.

Business private medical insurance

A substantial saving. Support at every renewal.

A business asked us to review its employee medical insurance at renewal. We compared suitable alternatives and recommended cover that met its needs, at a substantially lower premium than the original renewal offer. We also reduced the excess to zero.

Our support continued the following year, when we helped secure a further reduction in the insurer’s proposed renewal premium. The value came from reviewing the options and continuing to challenge renewal costs on the client’s behalf.

An anonymised client example. Cover terms differed and were assessed against the client’s needs. Savings are not guaranteed.