Shareholder Protection
Get tailored Shareholder Protection through Jensten Insurance Brokers. This cover can protect shareholders in the company if they pass away or become critically ill. Cover can include Life of Another policy, Company Share Purchase Agreement and Own Life Under Business Trust policy.
What is Shareholder Protection?
Business shareholders each own a stake in a company, which translates to control over how the company is run. Shareholder Protection is a life insurance policy that provides a lump sum should a shareholder die while in service with your company. Shareholder protection benefits your company and your family. Many companies’ concerns are: What happens if I pass away? Where do my shares go? What about my family? This policy will alleviate these direct concerns. Simply put, when a shareholder dies, the shares go back to the company, and the shareholder’s family receives the monetary value of the shares. From cross-option agreements to trusts and wills, our expertise ensures your cover does what you need it to do.


What Can A Shareholder Policy Cover?
We can arrange a tailored Shareholder Protection Insurance Policy to meet your individual requirements. There are three types of taxation involved with each option.
- Life of Another Policy – The most commonly used plan as the shareholders pays for their own personal insurance policies relating to the lives of other shareholders from their gross salaries
- Company Share Purchase Agreement – The business takes out a policy for each shareholder, and when this shareholder dies, the business is paid. The company then buys the absent shares, boosting the proportionate shares remaining for the shareholders.
- Own Life Under Business Trust Policy—Individual shareholders take out an insurance policy on their own life, which allows all policyholders to combine their shareholder protection in a trust. When a shareholder dies, the payout from their policy is paid to the trust.
How Much Does Shareholder Protection Cost?
Several factors can affect the cost of Shareholder Protection Insurance, which is why premiums are subject to underwriting and may change based on answers to health and lifestyle questions. We’d know ahead of incepting cover if costs were to change.
Get in touch for a customised quotation fit for your budget and requirements.

Why choose Jensten Insurance Brokers?
Our Employee Benefits industry specialists, based in the UK, are here to assist you if you are still unsure about this type of insurance. We can provide tailored recommendations to your company.
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Shareholder Protection
To help you learn more about Shareholder Protection here is our frequently asked questions. We hope they are of use, but if you’d like some independent advice from our employee benefits consultants, please call us and a member of our experienced team will be happy to help.
If the premiums are paid by the business directly, all individual shareholders should be made aware that HMRC will declare this a P11D benefit-of-kind. They will be required to pay any relevant Income Tax and National Insurance contributions based on the value of the premiums
To make sure the deceased shares are still within the realm of the company
Yes, you can, or we can look to equalise your premiums where you’d all be paying the same
Both the company and the deceased shareholders’ families.
No, the plan would be set up on an individual basis. As the age of the shareholder, the value of the shares could differ.
The sum assured should be based on your share value within the company.
The money will be paid to the deceased shareholders family to release shares back to the company. The other shareholders policies will stay in place.
Yes, you can add critical illness to these plans.
The policy will be set up via a trust depending on the type of shareholder cover. A cross-option agreement will be put into place.
The shares will be passed to the deceased shareholders family.