Buy/Sell Cover

If one of your business partners dies, who will inherit their share? Will you find yourself having to run every business decision past an executor? Will it be split between several beneficiaries of their estate, or have to be independently valued and sold to a stranger?

What if the new owner wants to keep the investment, but doesn't have the skills or knowledge to step into your partner's role?

Buy/sell cover is a cornerstone of long-term continuity planning. It's an insurance specifically designed for small partnerships and privately owned companies, where the owners are closely involved in running the business. It is a contract between the partners which gives each an option to buy out each other's shares at a pre-agreed price, and provides a lump sum to finance it.

Buy/sell insurance gives security and peace of mind to everyone involved. For the remaining partners, it enables you to keep ownership and control of the business you love. For the loved ones left behind, it provides a fair cash payment which can easily be shared between everyone who inherits the estate.

You can also claim under your buy/sell insurance policy if you or one of your partners becomes chronically ill or permanently disabled and is no longer able to work in the business.

Buy/sell policies work hand-in-hand with other business life insurances, which provide the cash to keep the business going while you work out how to move forward after losing a business partner.

Buy/sell cover can be bundled with any other business life insurance to provide a comprehensive package. Our life insurance specialists can answer all your questions about the business life insurance products on offer and help you understand and compare your options.

Buy/Sell Insurance Case Study

Protecting their hard work

Richard and Pete had been in business together for more than 20 years. Combining Pete's expertise as a plastics engineer with Richard's marketing skills, they built up a specialised injection moulding business worth over $2 million.

Pete and Richard recognised the value of their business and decided to take out buy/sell insurance cover to give them certainty about what would happen to the business if one of them fell ill. Two years later Richard died suddenly, aged just 52.

Richard's estate was left to his wife and children, who had no interest in taking over his role in the business. Using the life cover payment which he received from the shareholder protection insurance, Pete was able to buy out their share and hire a replacement marketing director. Richard's family received a large sum which gave them financial security despite losing their main provider.