Co-Director Insurance

The sudden loss of a director through death or ill health can have very negative consequences on a business. The remaining directors would either have to raise capital to purchase the shareholdings off the next of kin or run the risk of their family gaining control of the company.

Co-Director Insurance is a Life Cover that is taken out by the Directors on the lives of the Directors, either in a Life of Another or Own Life in Trust capacity. A contract is entered into between each shareholding Director and gives them the option to acquire the shareholdings from the next of kin.  

Co-Director Insurance pays a lump sum to allow the remaining directors to buy the shares from the deceased next of kin. This brings financial stability to the business, as the remaining directors keep full control of the company.

Compass Private Wealth have agencies with all the main Insurance Companies who provide Co-Director Insurance Cover and can arrange the most suitable Sum Assured and Provider for our clients.