‘Business assurance provides not only for the continuity of the business, but also strengthens the business structure.’
Buy and Sell Agreements
Every person in a business or who is contemplating starting a business should ask themselves the following questions:
- What happens to the business should I die or become permanently disabled or retire? Does the business continue past the event or does it cease?
- Should a fellow shareholder die – what becomes of his shareholding AND will I have to try and run the business together with my deceased shareholder’s relatives?
- Will the relatives have sufficient experience in the business to be effective or will they create unnecessary tension – Would you want to have the relatives in the business?
- Will I have enough cash to buy my deceased shareholder’s shares in the business?
- Will the bank manager and/or creditors be satisfied with my deceased shareholder’s family running the business?
The solution: We assist you to construct a properly worded Buy-and-Sell agreement with all shareholders/partners together with properly calculated risk policies for life and disability cover. In the event a partner/shareholder has to die or become disabled, the policy will pay the sum assured (equal to shareholding amount) to the necessary beneficiaries.
A key person is someone who is fundamental to the running of a business. If this person has to die or become disabled it would be costly to replace them. This is funded through a policy on that person’s life with the benefits being paid to the business to ensure continuity and to use as they see fit.
A contingent liability plan is funded by a life policy which will liquidate the personal guarantees given by a guarantor on behalf of the business in the event of premature death or permanent disability.” – Description by Standard bank.
Employee Compensation Packages
Reward your employees with savings plans paid out every 5 years – this is done through a properly structured endowment plan. It is a great way to ensure employees can “earn” rewards for staying with their employers, assisting employees to save money, granting them a “bonus”, etc.