What is shareholder protection takaful?

Regardless of the industry, you operate in, it’s critical to ensure that you protect your business with a safety net.

After all, it represents not only the livelihood of you and your family but also that of your employees and fellow stakeholders.

One of the most damaging events a business can fall victim to is the death of a major stakeholder.

Should a business owner die unexpectedly the event can have a serious impact on their enterprise, not to mention the shareholder’s family.

When it comes to distributing shares, family members and other beneficiaries may prefer to cash them in. Meanwhile other shareholders may wish to purchase the shares but may not have adequate funds at their disposal.

This is where shareholder protection insurance comes in extremely useful.

shareholder protection

Even though it’s widely used throughout the business world, not everyone has a thorough understanding of what it is, how it works and what the benefits are. So here’s a quick refresher guide.

What is shareholder protection takaful?

Put simply, shareholder protection takaful is designed to ensure that the aftermath of a shareholder’s death is a smooth and stress free as possible.

It involves writing up a series of legal agreements that set out how shares are to be managed if a stakeholder passes away. Either the fellow shareholders or the company as a whole takes out takaful policies on the lives of each shareholder.

Should a shareholder die, policy pay-outs can be used to purchase the shares of the deceased holder.

The benefits of shareholder protection takaful

A safe and stable business plan

In today’s cutthroat world of business it’s crucial to underpin an enterprise with a safe and stable business plan. Deceased shareholders are a guaranteed way to shake up operations and seriously jeopardise the strength and unity of a business.

By taking out shareholder protection takaful, shareholders enjoy the total peace of mind that should a fellow investor pass away, surviving shareholders will not have to worry about finding the money to purchase assets.

Instead, they will receive pay-out funds that allow them to buy up the deceased’s shares quickly and efficiently. This means business can return to normal as quickly as possible.

Support for family members

Althoughshareholders generally have an in-depth understanding of how to leverage their assets, inheriting family members often have no idea how to manage a portfolio. Most would rather receive money as this is far more useful to them.

Cash payments can also help to relieve the stress that families face when losing a key breadwinner. When taking out shareholder protection takaful, company stakeholders can rest easy that their families will receive financial compensation in the case of their death.

The policies guarantee a fair buy-out price, as well as a quick, easy and stress free process.

Illness and disability

As well as supporting fellow shareholders and family members in the case of death, shareholder protection takaful can also be used to cover serious illnesses.

Given that the right agreements and policies have been put in place, a sick shareholder is able to sell shares to continuing shareholders.

Should a shareholder fall ill, the knowledge that they have shareholder protection takaful will be a big weight off their minds.

From small scale two-person enterprises to Sdn Bhd, shareholder protection takaful is a must have policy for any savvy company.

As well as ensuring the stability and longevity of the business, policies also offer the peace of mind that fellow stakeholders and family members will be looked after if the worst happens.

Regardless of the industry, you operate in, it’s critical to ensure that you protect your business with a safety net.

After all, it represents not only the livelihood of you and your family but also that of your employees and fellow stakeholders.

One of the most damaging events a business can fall victim to is the death of a major stakeholder.

Should a business owner die unexpectedly the event can have a serious impact on their enterprise, not to mention the shareholder’s family.

When it comes to distributing shares, family members and other beneficiaries may prefer to cash them in. Meanwhile other shareholders may wish to purchase the shares but may not have adequate funds at their disposal.

This is where shareholder protection insurance comes in extremely useful.

Even though it’s widely used throughout the business world, not everyone has a thorough understanding of what it is, how it works and what the benefits are. So here’s a quick refresher guide.

What is shareholder protection takaful?

Put simply, shareholder protection takaful is designed to ensure that the aftermath of a shareholder’s death is a smooth and stress free as possible.

It involves writing up a series of legal agreements that set out how shares are to be managed if a stakeholder passes away. Either the fellow shareholders or the company as a whole takes out takaful policies on the lives of each shareholder.

Should a shareholder die, policy pay-outs can be used to purchase the shares of the deceased holder.

The benefits of shareholder protection takaful

A safe and stable business plan

In today’s cutthroat world of business it’s crucial to underpin an enterprise with a safe and stable business plan. Deceased shareholders are a guaranteed way to shake up operations and seriously jeopardise the strength and unity of a business.

By taking out shareholder protection takaful, shareholders enjoy the total peace of mind that should a fellow investor pass away, surviving shareholders will not have to worry about finding the money to purchase assets.

Instead, they will receive pay-out funds that allow them to buy up the deceased’s shares quickly and efficiently. This means business can return to normal as quickly as possible.

Support for family members

Althoughshareholders generally have an in-depth understanding of how to leverage their assets, inheriting family members often have no idea how to manage a portfolio. Most would rather receive money as this is far more useful to them.

Cash payments can also help to relieve the stress that families face when losing a key breadwinner. When taking out shareholder protection takaful, company stakeholders can rest easy that their families will receive financial compensation in the case of their death.

The policies guarantee a fair buy-out price, as well as a quick, easy and stress free process.

Illness and disability

As well as supporting fellow shareholders and family members in the case of death, shareholder protection takaful can also be used to cover serious illnesses.

Given that the right agreements and policies have been put in place, a sick shareholder is able to sell shares to continuing shareholders.

Should a shareholder fall ill, the knowledge that they have shareholder protection takaful will be a big weight off their minds.

From small scale two-person enterprises to Sdn Bhd, shareholder protection takaful is a must have policy for any savvy company.

As well as ensuring the stability and longevity of the business, policies also offer the peace of mind that fellow stakeholders and family members will be looked after if the worst happens.

The benefits of shareholder protection takaful


A safe and stable business plan


It’s crucial to underpin an enterprise with a safe and stable business plan. Deceased shareholders are a guaranteed way to shake up operations and seriously jeopardise the strength and unity of a business.

By taking out shareholder protection takaful, shareholders enjoy the total peace of mind that should a fellow investor pass away, surviving shareholders will not have to worry about finding the money to purchase assets.

Instead, they will receive pay-out funds that allow them to buy up the deceased’s shares quickly and efficiently. This means business can return to normal as quickly as possible.

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