Also known as ‘key man insurance’, this can compensate a business for financial losses arising from the death, or extended incapacity, of a specified employee or director.
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This can provide a business partnership with the funds to ‘buy out’ or compensate the deceased’s dependants, should a business partner die.
In the interests of financial security, business stability and continuity, it is essential to provide a safety net following the loss of a shareholder.
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