Group Benefits

Buy-and-Sell Agreement

A Buy-and-Sell Agreement is a legal and binding agreement between business partners that facilitates the purchase of the deceased or disabled partner’s share in the business via a life assurance contract that pays out a lump sum on the death or disability of a partner. The benefits of such an agreement are as follows:

• Each partner’s interests and rights in the business are clearly valued and specified
• The surviving partner/s are provided with the funds to retain control of the business
• The business can continue to run instead of facing a potentially catastrophic collapse
• Proceeds on the death of the life assured are free of estate duty and capital gains tax (provided the necessary legal requirements are met).