Buy & Sell Assurance
The purpose of a buy-and-sell agreement is to provide the surviving co-owners with cash to purchase the interest of a deceased co-owner. According to the agreement, each co-owner takes out life cover on the other co-owners lives.
As a business owner, have you taken the time to consider the practical consequences of your unexpected death or disability?
The solution is a business continuity plan, also known as a buy-and-sell agreement.
The business owner finds someone who understands his business and would be interested in taking over ownership. He then concludes an agreement with the buyer in terms of which the owner’s interest in the business will be sold to the buyer in the event of the owner’s death or permanent disability.