There are two options available when considering partnership protection:
• Own life. Own life cover is suitable for businesses that have more than two partners. Each partner would take out their own policy, and pay their own premiums, the benefits of which are written in trust for the other partners. In the event of a successful claim, the remaining partners can use the lump sum to purchase the affected partners' share of the business from their estate.
• Life of another. This type of cover is suitable if there are only two partners in the business. In this case, each partner would take out life of another policies on the other partner. If a claim is successful, the remaining partner then has the financial means to purchase the affected partner's share of the business from their estate.