Skip Ribbon Commands
Skip to main content

Invest

Advice

Service

Invest Online Back

Call me back

Email us

Back

Call me back

Email us

Email us

Skip Navigation LinksSelf-employed Professionals

Business Continuity and Risk Management

It's your life's work, your passion and your legacy. With Sanlam, you have access to a comprehensive range of practical business protection solutions to ensure continuity and protect your assets.

Risk Cover for Your Key Staff

You can't predict the future. However, you can provide financial security for your business if a key person dies or becomes disabled. Find out how to mitigate this risk with Key Person Insurance.

Wills, Trust Services and Estate Planning

There's no need to see your life's work go to waste due to a non-executable will. Plan properly to spare your next of kin and business partners as much trauma and inconvenience as possible.

Safeguarding the financial interests of your loved ones is your biggest priority when it comes to planning your estate. Ensure that the needs of your family and minors are taken care of and that estate duty, capital gains tax and income tax are minimal.

Establishing trusts and drafting a will require specialised legal knowledge.

We offer the following services:

  • Drafting of wills
  • Trust administration
  • Administration of deceased estates

Contact us now to arrange for an accredited Sanlam financial planner to assist you.

Asset Protection

Are your assets covered against any potential loss or damage?

Your assets should be well protected to ensure a secure existence for you and your dependants and a stable working environment for you. You cannot afford to lose a strategic resource that creates wealth and security for you and your dependants.

Contact us now to arrange for a comprehensive asset protection needs analysis.

Protecting Your Shareholding in the Business (Buy and Sell Agreement)

It is advisable to insure your shareholding in the business. Find out how you can do this with a Buy-and-Sell Agreement.

Contingent Liability Insurance (Signing Surety)

Signing surety for business debt can add business risk. Find out how to mitigate this risk with Business Debt Insurance.

Protection of Credit Loan Accounts

The need

The capital structure of a business usually includes loans from its owners. The problem is that these loans are usually assets that diminish in value and usually remain unrecovered in the event of the death of such owners.

The business may not be able to repay the loans, or to refinance the loans, leaving it in distress. Funds that will enable the business to repay the loans, can be created relatively easily. These loans can be covered with a life insurance policy.

The loan account solution

Loan account assurance covers the life of the owner of the business in the event of his/her death (and disability if the client wishes to include disability cover) to pay out an amount of capital which will, after estate duty, be equal to the loan account. This cover will enable the business to repay the loan and thus protect the capital structure of the business.

There are essentially two methods to address the stated problem that arises at the death or disability of the owner with an outstanding loan account:

  1. The one method is to include it in the buy-and-sell agreement as part of the shareholder’s interest.
  2. The second method is for the business to insure the life of the owner for an amount equal to the outstanding loan account. In this case, the business settles the loan account.

The main objective of the credit loan account solution is to ensure that a business that has borrowed money from an owner will be able to repay the money to the estate of the owner upon his/her death or, if he/she becomes disabled.

Contact us now or speak to your financial intermediary.

Protection of Debit Loan Accounts

The need

Businesses sometimes lend money to their owners. This is not uncommon. A problem arises if the owner/borrower dies or becomes disabled. The business is then faced with the risk that the estate of the owner may not be in a position to repay the money owing to the business.

This puts the estate at risk of being sued by the business to recover the loan. The remaining owners are indirectly at risk. If the business cannot recover the capital, then the remaining owners suffer consequential damages.

The debit loan account solution

The solution is to cover the debit loan account with a policy and to cede the policy to the business as security.

Should the borrower die, or become disabled, the proceeds of the policy can be used to settle the debt. This relieves the owner of the debt, and the business recovers its capital.

Contact us now to arrange for an accredited Sanlam financial planner to assist you.

Business Overhead Protection

The need

When the inevitable happens and a co-owner dies, the business normally faces a turbulent time. The business may be catapulted into a crisis. Remaining owners, employees and clients need to come to grips with the fact that one of the main drivers of the business is no longer there. Normally in spite of their best efforts, it is in the critical 6 to 12 months after the death of a co- owner that the business feels the impact.

The operations may be temporarily impeded to such an extent that the business will not be able to pay its overheads. This problem is compounded if the business had a single owner.

If the business closes down owing to the lack of succession planning after the death of an owner, it leaves the business seriously exposed with regard to overheads that exist because of longer- term agreements. The liability in the business may in some cases flow straight into the affected owner’s estate.

An example of potential overheads that may be claimed even after the business closed down after the death of the owner:

  • the employees of the business may institute a claim for severance pay; and
  • the landlord may wish to recover the rental for the full rental agreement period.

The overhead protector solution

The goal of the overhead protector is to protect the business against the turbulent time directly after an owner dies.

It does so by creating funding to secure at least the overheads of the business for a period of between 6 and 12 months. This is done by insuring the lives of the owners. The business would typically take out a policy on the life of the owners. In the event of the death of an owner or a co-owner, the proceeds of the policies will be paid to the business.

Contact us now to arrange for an accredited Sanlam financial planner to assist you.

Protection of Income

Income protection should form the basis of the financial plan for every business owner.

An income protection solution pays out if you are unable to work and earn an income due to illness or injury. The solution is designed to pay a monthly income, free of income tax, while the business owner is temporarily unable to work. It also gives the business owner the option to cover their earning ability should their condition be permanent.

Contact us on 0860 100 539 or complete our online enquiry form and we’ll put you in touch with one of our accredited financial planners.

Advice

Get expert financial advice

A financial planner can help you make the most of what you have - contact us today on 0860 100 539.

Invest

Advice

Service

Invest Online Back

Call me back

Email us

Back

Call me back

Email us

Email us

Sanlam Life Insurance is a licensed financial service provider.
Copyright © Sanlam