Business Owners

For business owners, there is more than yourself and your family to think of. Let’s explore two key areas of business risk protection:

1. Key Person Cover:

• Purpose: Key Person cover helps ensure that your business has the necessary funds to cover costs if a vital team member—the “Key Person”—couldn’t work long-term or passed away.
• Questions to consider:
  • Who is this Key Person in your business?
  • Are there multiple Key Persons?
  • What if the Key People could no longer contribute due to serious injury, disability, or death?
• Business Booming?: While you’re managing time and finances to keep your business running smoothly, have you considered the people who drive its success?

2. Buy/Sell Cover (also known as Share Purchase or Partnership Protection):

• Purpose: Buy/Sell cover is a key component of a prudent business exit strategy. It provides protection for remaining business owners and the family or estate of the life insured in case of the insured’s death or disability.
• How It Works:
  • Buy/Sell cover is set up to fund a Business Buy/Sell Agreement (also referred to as a Business Will).
  • It helps ensure that funds are available to compensate the family/estate of the life insured for the transfer of their share of the business to the surviving owner/s.
• Why It Matters: Without this cover, surviving business owners would need to somehow find the funds to buy out their late partner’s share – or remain in business with the family or estate of the late business owner – an often undesirable or unviable alternative.

Speak with us to explore how Key Person cover and Buy/Sell cover can help you and your business to be Well Insured.