Something to think about…if you are a business owner

Do you own a business? Do you have partners in the business? Did you have to borrow capital to start the business or do you have a loan account? Is there an individual in your business that might fall under the category of a key person?

These are all questions you have to ask yourself and if your answer to any one of these is “yes”, then there are a few factors you have to consider in order to ensure that you are covered sufficiently and that the process will run smoothly if the unthinkable happens.

  • If you are in business with one or more partners, it is imperative that you have a buy-and-sell agreement in place. This agreement will ensure that if you or any of your partners pass away or become disabled there are funds available to buy their share in the company. This will guarantee that no unwanted individual can become part of your business due to the fact that they inherited shares in the company.
  • Do you have cover in place for your loan account of borrowed capital? There are products available to ensure that loan accounts and borrowed capital are covered. The composition of this cover will be best determined by your financial advisor.

Definition of Key Person:

Individual whose knowledge, creativity, inspiration, reputation, and/or skills are critical to the viability or growth of an organization and the loss of whom may cripple it.

It is very important to have cover in place if this individual falls away. The cover will have to provide you with sufficient funds to get a suitable replacement and enough funds for training if necessary.


Don’t let the little things ruin everything, you’ve worked so hard for……………..

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