Business assurance addresses the problems that could arise in the event of not only death or disability but also of retirement of a partner, a director or a key person in a company, a closed corporation, a partnership or even a sole proprietorship. Business owners are often so involved in the day to day running of their businesses that they lose sight of the reason why they established their business in the first place - to create a sustainable income for them, their stakeholders and their families.
Business assurance forms a key part of any succession plan.
BUY AND SELL AGREEMENTS
In the event of death or disability of a shareholder or member of a business the shares they held may have to be sold or transferred to beneficiaries (e.g. his / her relatives)
Sometimes the relatives do not want to, or are not in a position to, become involved in the business. A Buy and Sell Agreement gives the other partners the opportunity to buy these shares. One of the ways this Agreement can be funded is by way of insurance policies on the lives of the shareholders.
KEY PERSON INSURANCE
Almost all businesses have one or several key staff members that influence the success of the business substantially. This may be due to their special skills, knowledge, experience, expertise or even their network.
Clearly, the death or disability of such a key person could be disastrous, resulting in severe financial loss for the business, loss of business momentum, impacts on productivity, and in extreme cases, business shutdown. Replacing a key person is a costly and time consuming matter.
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