Business Assurance Solutions
Buy and Sell agreements
Agreement between the shareholders/members of a business entity, obligating them to sell their interest on death or disability, to the survivors, and likewise obligating the survivors to purchase the deceased’s (disabled) shareholders/members shares/interest.
Key Person Insurance
Employer takes out a policy on the life of the employee whose services and knowledge are instrumental to the running of the business, with the purpose of compensating the business for the loss it will experience should the employee die or become disabled ensuring that there will be cash available to absorb any financial disruptions to the business e.g. loss of profit, recruitment and training of a replacement.
Contingent Liability Plan
Ensuring the settlement of a business loan where you signed surety. This means that the surety becomes personally liable for the business debts. If the surety dies or becomes disabled, the creditors could look to his/her personal estate for settlement of the debt.
Preferred Compensation Plan
Employees with specialised experience, knowledge and skills are fundamental to the success and profitability of a business. To retain the services of a valued employee, employer increases employee’s salary to place him in the position to take out an investment policy.
Future Liability Plan
Planning for future expenses is vital for the running of a successful business. Often the business does not have the cash or immediate liquidity at its disposal to meet these expenses. A future liability plan is geared at ensuring that the business pre-funds for these expenses in a systematic manner, through an investment vehicle such as an endowment policy. E.g. Expansion of the business or purchase of capital assets such as a premises or the need for the business to have capital to buy a business owner out upon retirement or some other pre-determined date.
Business Investment Plan
A business may have cash reserves that are not earmarked for any specific purpose and would like to invest these reserves in a diversified portfolio in order to ensure capital appreciation, so that should they be needed at some future date the cash reserves will not have been eroded by inflation.
