A & B Engineering- Business Insurance
Andrew and Bert are two shareholders in the business. The issues that typically arise are;
If one of them dies the survivor will probably want to buy the shares from the estate of the deceased. Where will the money come from to do that.?
How will the business continue to survive if a key person (probably Andrew or Bert) becomes unable to work, or becomes disabled or dies? Where will the cash flow come from?
If one of them dies, how will a debt be eliminated where they have both given a personal guarantee. Eg Bank Loan
The quoted example below shows how the Fidelity Life software seperates these issues into separate riders, each of which deals with one of the aspects mentioned above.