Ownership Protection
‘Buy/Sell Insurance’ |
Protects owner’s interest in the business and ensures orderly handover and ‘perpetuity’ of the business.
Fundamental to incorporate insurances into a ‘Buy/Sell’ agreement.
Insurances provide the funding mechanism for the Buy/Sell agreement.
Ownership of insurances structured in variety of methods eg Self-owned, Cross-owned, Trust, Company or Super. |
| Key Person Protection |
Protects the business against the loss of a person who makes a significant contribution towards profitability and stability of the business.
For revenue or capital purposes. E.g. replace loss of revenue as a result of the death of a Key Person.
Insurance is owned by the business. |
Assets Protection
‘Loan Guarantor’ insurance |
Protects against guaranteed liabilities of the Business.
E.g. Funds to extinguish all or part of business guaranteed bank loans or supplier loans.
Insurance is owned by business. |
| Business Expenses Protection |
Protects against the fixed expenses of running the business.
Does not cover Business Interruption eg flood damage or fire.
E.g. Provision of monthly income for business to pay for such items as rent, non-income producing staff salaries, insurances etc.
Either self or business owned insurance. |
| Estate Equalisation Protection |
Creation of wealth to offset assets which are not easily divided in the case of the death of an owner. |