Nothing is certain expect for death and taxes

Ever thought about what would happen if you or your business partner passed away?

Business Protection provides a lump sum through a life policy so that the next of kin’s shares are purchased back by the remaining directors/partners and thus allows the deceased family to be looked after while the remaining directors/partners can retain control of the business.

Key risks to a business 

  • What effect on your business would there be if a key shareholder or director passed away?
  • What would happen to your partner’s share of the business?
  • If your partner’s family inherited the share of the business how would you feel about them becoming involved in the day to day running of the business?
  • Would you have the funds to buy them out and or be able to continue to provide their share of the profits on an ongoing basis?
  • How would your family survive financially if you were to pass away and the business couldn’t provide your family with a lump sum pay-out or an annual income from the business?

Why it makes sense

On the death of a partner in a business, their shareholding forms part of their estate and is passed to the nest of kin.

Those who inherit the shares may not want to get involved in the business, but still require their share of the profits annually in order to provide for their family.

They may actually want to get involved in the business and could be a disruption to the business. Or perhaps the remaining partners may not want the next of kin involved.

Would your company have the funds to buy out the next of kin shares in order to retain 100% ownership of the business?


Business Protection


Case Study Example for Business Protection

John is 45, a partner in a consulting business and owns 50% of the company. John has a wife and 3 young children under the age of 10. He runs the consulting side of the business while his business partner Mary runs the training side of the business.

The business is valued €1, 650, 00. On John’s death his shares are passed to his estate and next of kin. His next of kin are therefore entitled to his share of the business, valued €825,000.

John’s wife does not have a strong knowledge of the business and does not want to be involved. However, if she cannot be bought out she does want to have an influence in order to protect her income from the business and look after her children.

Mary understandably would not like to have John’s wife involved given that she feels that she would not contribute to the business in a meaningful manner.


The solution is to have a life policy in place for €825, 000 in order to purchase back the shares of the deceased partner providing a lump sum for the deceased family.

John is aged 45 and a non-smoker. The premium will be c. €126.42 per month for €825, 000 cover.

Premium is tax deductible through the business. There is roughly a different of €30.67 per month across the providers in the market.

If you would like any advice on Business Protection, or to arrange a consultation, please contact Alpha Wealth by phone 021-2061780 or by email

Leave a Reply