What is Buy and Sell Cover?Buy and Sell Insurance is risk cover that business co-owners take out on one another's lives to enable them to buy a deceased or disabled co-owner's share in the business. It is one step closer to ensuring business continuity.
- The co-owners enter into an agreement where they agree to purchase the interest of their fellow co-owners should any of them die or become disabled
- A co-owner effects a GREENLIGHT benefit on the life of another co-owner and vice-versa. Each co-owner will consequently own a benefit on the life of the other and pay the premiums under the benefit of which they are owner
- When more than one co-owner is involved, the benefit on the life of each co-owner will be jointly owned by the other co-owners, proportionate to their interest in the business
- A GREENLIGHT benefit provides the cash to facilitate the purchase of an interest in the business, thus ensuring business continuity and the financial welfare of a deceased's dependents