Funds a surviving business partner to buy out a deceased or disabled partner's share, so ownership transfers cleanly without forcing a sale.
Ensures a partner's share passes to the surviving partners, not to their estate or family, by agreement.
Structured alongside a formal buy-and-sell agreement drafted by your attorney.
Provides the funds to pay a fair, pre-agreed valuation for the departing partner's share.
| Cover feature | Detail |
|---|---|
| Cover basis | Each partner's share of business value |
| Minimum cover per partner | R500,000 |
| Requires | A formal buy-and-sell agreement (drafted separately) |
| Policy structure | Cross-owned by partners or held in a trust structure |
| Valuation reviews | Recommended every 2–3 years as the business grows |
Yes — the insurance funds the buyout, but a formal buy-and-sell agreement drafted by an attorney sets out the terms.
Cover may fall short of the business's actual value over time — regular reviews keep the cover amount realistic.
Cover can be structured for any number of partners, with each partner's share insured individually.
An adviser at Mzansi Advisors can connect you with the right structure and legal support — at no extra cost.
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