Example Frame
    Multiple suppliers , multiple benefits covering multiple events. Full, Limited or Non-Advice models to match your need & budget. You have the choice to Choose!
    Will they be financially independant, if you died prematurely? Would they loose their income stream? Would they be exposed to debt they can't service? Life cover will negate these issues!
    Life Cover
    Life insurance will remove debt for your family if you died from cancer, do the same, if you survive! Cover up to forty-eight events! Trauma cover gives you the choice, to choose!
    Trauma Insurance
    Life can change in a Milli-second. Would your Family, your Future, your Retirement plans, your Dreams be at risk if you could never work again? Total and Permanent Disablement will cover this event!
    Total and Permanent Disability Cover
    Can you survive without your income? How would your Mortgage/rent be paid? Who will put food on your table? What is the longest holiday you can take before you need to get back to work? Insure the "front door" to your future, your Income!
    Income Protection
    Can you jump the medical waiting list or will you wait until your condition gets worse, to get better?  Can you fund the newer non-subsidized designer drugs? With Private medical cover, you can choose to get better today!
    Medical Cover
    "Cash is King" You insure your business plant, machinery and buildings, why not "YOUR KEYPEOPLE"? Revenue leads to profit. Would your profit be impacted if a Key Person died or was disabled? Use revenue contracts to provide cashflow!
    Revenue Cover
    Shareholder Equity is a valiuable asset. Protect it, using Shareholder's cover. Could your co-shareholders fund out the value of your equity to your estate, if you died or could never work again?
    Shareholder Cover
    Want to have happy employees and protect your bottom line? For the cost of a cup of coffee a week, you can provide security for staff and protect profit! With Group Insurance, you may cover pre-existing health issues & get wholesale pricing.
    Employees benefits

Shareholders Equity Extraction Cover (Buy/Sell Cover)

Eight Suppliers - Multiple Options

If your business partner/shareholder, died tomorrow and his/her spouse/partner came to you and gave you the following choices, which one would you take:

  • "I don't want to be involved in this business, I don't like you, I don't like the business that you and my spouse/partner operated, I just want the percentage of my shareholding paid to our estate, in cash, within the quickest time frame possible."
  • "As my spouse/ partner has died, you are now in business with me/my children/my solicitor/my accountant etc"
  • "As my spouse/ partner has died, and we are the majority shareholder, I want this business sold!
‘What happens when a Business Owner Dies or Becomes Disabled?'
Buy out the Deceased/ Disabled Owner's Interest
Take the Deceased/Disabled Owner's Representatives into the Business as either:
Sell to the Deceased/Disabled Owner's Representatives
Take Outsiders into the Business who have purchased the Deceased/Disabled Owner's Interest
Liquidate the Business or Sell in a Third Party

The Problems:

The problems here are:

This will not be a feasible option unless:

The problems here are:

The problems here are:

• Determining the prices;
• Raising the money;
• Fixing the terms of payment;
• Even if the agreement can be reached on these points, strained negotiations and legal delays may make it difficult to reach a mutually acceptable conclusion;
• Because there may be no other buyers, the remaining owners may feel they are being asked to pay too much while the deceased or disabled owners representatives may feel that they are receiving too little;
• How will the interest be valued for estate duty purposes? Will the remaining owners be prepared to pay an amount equal to estate duty value?
• Will they support the plans and decisions of the remaining shareholders!
• Will they want to change dividend policy or existing remunerations levels?
• What if some are minors represented by a guardian?


The problems here are:
• Will they be fully qualified to assume their share of the responsibilities? If not, this could be the worst possible outcome.
• They are qualified to operate the business?
• The remaining owners are willing to sell and either withdraw from the business or remain as employees.
Additionally, all the problems in column one will have to be overcome.
• The same as those listed in column two for both inactive and active co-owners;
• Outsiders may not be interested, particularly if it is a minority interest.
• Will the remaining owners and the deceased/disabled owner's representative agree on a value?
• If the liquidation or sale is delayed, it may not produce sufficient to pay any estate duty liability. This may result in the forced liquidation of assets other than the business interest;
• Unless the remaining owners and the deceased/disabled owner's representative can agree on some other solutions, this alternative may be forced on them. A business in liquidation or facing a forced sale has a much reduced value to that of a going concern.

A very simple solution is to put in place a "Shareholder's Buy/Sell Agreement" that has provision to supply funds via an insurance policy to cover the equity held by each shareholder in the company.

Most agreements have provision to sell shareholding while the shareholders are alive and talking to one another, but no provision for a shareholder dying or suffering a trauma event.

If an event covered under the policy happens (Death or TPD or Trauma *see seperate note), there is a provison in the "Buy/Sell Agreement" for the value of the equity in the business of the affected shareholder, to be paid to his/her estate in cash from the proceeds of the insurance policy, provided the estate signs over the shares of the affected shareholder to the remaining shareholder(s) in proportion as mutually agreed upon by all parties, while all parties are standing.

* For Trauma the agreement may include an optional trigger, so that provision may be made to hold any funds in trust until a decision is made to trigger the agreement to sell shares for cash.