Buy Sell insurance pays a lump sum if you or one of your partners dies or suffers a serious illness or injury and are unable to stay in the business. The payout helps ensure that the remaining owners can acquire the departing owner’s share and continue running the business. It should also help ensure that the departing owner or their estate will be fairly compensated for giving up their rights to the business.

When it comes to business estate planning, the big question you need to ask is:

‘Would your business be able to buy a departing owner’s share of the business if they died or suffered a serious illness or injury?’

If your answer to this question is no, you need to consider transferring that financial risk to an insurance company.

Your financial adviser can help you do that, as well as answer any questions you have about Buy/Sell insurance, and then calculate how much Buy/Sell insurance you need to safeguard your business in the event something should happen to one of the partners.