Why include life insurance in a shareholder agreement? | ScriptaLegal
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Frequently asked questions > Company > Administrative arrangements > Why take out a life insurance policy in a shareholder agreement?

Why take out a life insurance policy in a shareholder agreement?

To ensure the financial protection of the shareholders, life insurance comes to finance the acquisition of shares of the deceased shareholder. The insurance policies upon the live of each of the shareholders can be taken and maintained in force by the business corporation and that, by paying the premiums for that purpose. It is appropriate, if possible, to contract a life insurance for the amount of the evaluation of shares held by each of the shareholders.

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