Shareholder Protection

Shareholder protection allows business owners to buy shares back from any partner who is diagnosed with a critical or terminal illness, or dies. This policy helps surviving owners stay in control and minimises disruption to the business.

Why shareholder protection matters

Dealing with ownership in a company can be difficult in the event of an untimely death or illness.

A shareholder arrangement sets out how the shares should be valued and gives the surviving shareholders the right to buy the shares, or the outgoing shareholder the right to sell.

Why recommend AIG

If you choose to recommend AIG’s share purchase protection, we offer:

  • Share protection for most limited companies
  • A choice of life or life and critical illness cover
  • The flexibility to adjust cover when the financial needs of the business change*

*Changes are subject to certain limits and conditions.

Setting up shareholder protection

Each individual shareholder can take out separate cover for themselves (known as an ‘own life’ policy). This insures them for a sum assured equivalent to the value of their company shares. If they choose to, they can write this into trust to benefit their co-shareholders.

You may also need your shareholding clients to enter into an explicit agreement that if one of them dies, the remaining shareholders can buy their shares from their personal representatives.

They can also agree that if one of them suffers a critical illness, the affected shareholder can choose to sell their share. If they decide to do this, the remaining shareholders must buy it.

These are called double and single option agreements. We have a dedicated specimen option agreements and a specimen business trust document. We cannot advise on whether putting a plan into a trust would be suitable for the client’s particular circumstances and would recommend that they take professional legal advice on the suitability of these specimen documents.

Any policies you set up must be aligned with the Articles of Association and the shareholders’ agreement. There may also need to be a trust and/or buyback document in place, for them to be effective.

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Smart Health

From on-demand consultations with UK based GPs to second medical opinions from Best Doctors®, our Smart Health service is a convenient way to connect your clients to tools that help them manage their health and wellbeing. It’s available 24/7, 365 days a year, anywhere in the world and can also be used by their partners and children up to age 21, all at no additional cost.


Smart Health is provided to AIG Life Limited customers by Teladoc Health.

Smart Health and Best Doctors are non-contractual benefits, meaning they don’t form part of an insurance contract with us. The services can be withdrawn at any time without notice.

Literature and support materials

Business Protection Adviser Guide

This Business Protection guide helps to support and streamline the advice process.

Download Updated 01 Sep 19
Reasons why - Business Protection

A guide to provide an example of what a ‘reasons why’ letter could contain.

Download Updated 25 Aug 21
Term Assurance for Business - Cover Details

Read our Cover Details for an explanation of how AIG's Business Protection cover with Term Assurance works.

Download Updated 13 Dec 20
Critical Illness for Business - Key Facts

For more information on AIG's Business Protection - Critical Illness with Term Assurance cover, visit our Key Facts.

Download Updated 13 Dec 20
Critical Illness for Business - Cover Details

Read our Cover Details for an explanation of how AIG's Business Protection - Critical Illness with Term Assurance product works.

Download Updated 13 Dec 20
Business Protection - Quick reference guide

This document is a snapshot of our Business Protection offering, containing an overview of the types of cover on offer, how to determine a cover amount, features and benefits and tax considerations.

DOWNLOAD Updated 18 Jul 21