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Skip Navigation LinksSmall and Medium Businesses

Business Continuity and Risk Management

Your business is your life's work, your passion and your legacy. Having a business continuity plan and a proper risk management plan are therefore crucial to protect your business.

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 the business you’ve built go to waste due to a non-executable will. Planning properly can spare your next of kin and business partners as much trauma and inconvenience as possible.

Your biggest priority when it comes to planning your estate is to safeguard the financial interests of your loved ones. 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 insured against any potential loss or damage?

Your assets should be well protected to ensure a secure and stable operating environment for your business. 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 Cover)

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

Business Debt Insurance (Contingent Liability Insurance)

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. Therefore, in the event of the owner’s death (or disability if the client wishes to include disability cover), it pays 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 death or if he/she becomes disabled.

Contact us now or speak to your financial intermediary.

Protection of Debit Loan Accounts

The need

It is not uncommon for businesses to lend money to their owners. However, a problem arises if the owner/borrower dies or becomes disabled. The business then faces the risk that the estate of the owner may not be in a position to repay the money owed to that business.

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

The debit loan account solution

The solution is to cover the debit loan account with a policy and cede that 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 a co-owner dies, the business normally faces a turbulent time. 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, the business feels the impact during the critical 6 to 12 months after the death of a co-owner.

Business operations may be temporarily impeded to such an extent that the business will not be able to pay its overheads.

If the business closes down due to the lack of succession planning the business can be seriously exposed with regard to overheads. The liability in the business may in some cases flow straight into the affected owner’s estate.

Examples of potential overheads that may be claimed even after the business closes down after the owner’s death are:

  • 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 overhead protector protects a business against turbulent times directly after an owner dies.

It creates funding to secure at least the overheads of the business for six to 12 months. This is done by insuring the lives 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 or speak to your financial planner.

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

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

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