Robsons Group
Together we can do more!
Email: Info@robsons.co.za
Tel : +27 (31) 701 4877
Fax: +27 (86) 545 7126
Business Assurance
BUY & SELL INSURANCE
The need If one of the co-owners of your business were to die or become disabled, what would happen to that person's share of the business?
THE PROBLEM
The loss of a co-owner could mean:
- The existence of the business may be in jeopardy
- Credit facilities may be affected adversely
- Outsiders may obtain a controlling interest
- Remaining co-owners may be unable to afford the deceased's interest or shares
- The business interest may be sold for a value below fair market value.
THE SOLUTION
Buy & sell insurance is risk insurance that business co-owners take out on one another’s lives to enable them to buy a deceased or disabled co-owner’s share in the business.
How does it work?
1. The co-owners enter into an agreement where they undertake to purchase the interest of their fellow co-owners should any of them die or become disabled.
2. A co-owner effects a Greenlight benefit on the life of another co-owner and vice versa. Each co-owner will consequently own a benefit on the life of the other and pay the premiums
3. A Greenlight benefit provides the cash to facilitate the purchase of an interest in the business, thus ensuring business continuity and the financial welfare of a deceased's dependants.
4. When more than one co-owner is involved, the benefit on the life of each co-owner will be jointly owned by the other co owners, proportionate to their interest in the business.
Benefits to the disabled co-owner, or heirs of a deceased co-owner
Benefits to the remaining co-owners
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