Business Insurance

Key person insurance

A key person (or ‘key man') is someone who is fundamental to the running of the business. This person, through their knowledge, skill or expertise, contributes to the profitability of the business. But if this person should die or become disabled, contingencies need to be in place to ensure that the business's profitability is not impacted on, or that the impact is minimised.

Ideally, a business should seek a life insurance policy, possibly with disability and/or dread disease cover, on the life of the key person. The proceeds of this policy will then be paid to the business, to use as it sees fit.

 

  • Investments
  • Guaranteed endowments
  • Personal offshore portfolios
  • Unit trusts
Commrisk Life - Business Insurance. Financial Advisors for Business South Africa.
Commrisk Life - Business Insurance. Financial Advisors for Business South Africa.

Buy & sell insurance / agreements / business continuity

A buy and sell arrangement, supported by a buy and sell agreement and buy and sell insurance, ensures that on the death of a business owner, the business can continue to operate with as little disruption as possible for the surviving business owner/s. It also ensures that the estate of the deceased receives fair value for his/her business interest, as well as settlement of his credit loan account.

But there are other things to consider, which is why you need professional advice on this complex issue: Will your spouse get along with your partners? Will your partners have the means to buy your shares? Will an outside party become a partner? Contact us for sound advice.

Other

  • Analysis of existing portfolios
  • Financial Needs Analysis (FNA)
  • Risk Profile Analysis (RPA)