Shareholder Protection
Protect your business with shareholder protection
Shareholder protection pays a tax-free lump sum to the surviving shareholders when there is a shareholder death. The funds are then used to buy back the shares of the deceased shareholder from their estate, giving their family fair value for the shares, and the surviving shareholders keep control of the company.
- We search every UK insurer
- No fees, ever: we're paid by the insurer, not you
- FCA authorised and regulated (985058)
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The quick version
Shareholder Protection in a minute
- What it is: Insurance that funds you to buy back a deceased co-director's shares, combined with an agreement to make the transaction happen
- Who it's for: Any UK limited company with two or more shareholders
- What it covers: Your ownership, your control, and your ability to keep running the business without an unwanted third party involved
- How to get it: One call with our team - we search every UK insurer and present your options
How much does shareholder protection cost?
A 40-year-old shareholder would pay around £31.98 a month for £500,000 of shareholder protection cover, or £60.64 a month for £1,000,000. Because each shareholder is insured separately, two 40-year-old shareholders each covered for £500,000 would pay around £63.96 a month in total.
| Age | £500,000 cover | £1,000,000 cover |
|---|---|---|
| 30 | £18.25 | £35.20 |
| 35 | £23.71 | £46.01 |
| 40 | £31.98 | £60.64 |
| 45 | £43.77 | £82.30 |
| 50 | £60.93 | £119.44 |
| 55 | £86.56 | £171.85 |
| 60 | £111.32 | £202.16 |
Example monthly premiums per shareholder for a healthy non-smoker, the same as equivalent Relevant Life cover because the insurer prices the same life risk. Quotes sourced on 1 August 2026. Indicative only: premiums depend on each shareholder's health, occupation, lifestyle and underwriting, and on how the arrangement is structured.
Benefits overview
Key benefits of shareholder protection
It's all about keeping control of the company you have built by putting a plan in place to buy back those shares if needed, and ultimately, provide the funding needed to do so.
Keep control of your business
When a shareholder dies, their shares pass to their beneficiaries, along with the voting rights. This makes buying back their shares essential to keep control of your business.
Pre-agreed exit
We put an agreement in place that sets the share price and sale mechanism in the event of a death. The entire process is legally binding, so there are no difficult questions later.
Tax-free funding
To fund the purchase, a tax-free payment is made directly to each surviving shareholder. As a result, shareholders keep control of the company, and the deceased's family receives fair value for the shares.
Our customers
Trusted by business owners like you
“I set up shareholder protection policies for me and my business partners through Executive Life. They found us competitive quotes and the process was swift. I would highly recommend to other company directors.”
“Smooth process, easy to deal with and most importantly they saved me a lot of tax by switching my policy to one that could be paid for by the business.”
“Executive Life helped me find the best deal for my life insurance policy and also my income protection policy. It was very easy and the process took no time at all - I would highly recommend them!”
Questions
Frequently asked questions
What happens to shares when a shareholder dies?
Their shares form part of their estate and pass to whoever inherits it, typically a spouse, partner or children. Those people then have the right to dividends and to vote, and no obligation to sell, so overnight they become your new business partners.
Is shareholder protection a tax-saving product?
No, it's about control. Premiums paid by the company are typically treated as a Benefit in Kind for each shareholder insured. The point is to make sure the people who built the business remain in ownership of it, even when the worst happens.
How much cover do we need?
Your cover should match the value of your shareholding. If you own 50% of a business valued at £2 million, you need £1 million of cover. Because the value moves as the business grows, cover levels should be reviewed at least annually.
Do you arrange the legal agreement?
Yes. One call gets you a whole-of-market comparison, and we put the agreement in place alongside the cover, so there's no solicitor to find and nothing is left half-finished.
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