23/10/2023
🏢Buy & sell agreements are contracts that allow the remaining partners to buy out the share of a deceased or disabled partner at a predetermined price.
🧑💼Keyman policies are life insurance policies that protect a business from the loss of a key person, such as a founder, CEO or top salesperson.
🏦These policies can provide financial stability and continuity for a business in the event of a key person’s death or disability.
According to a study by the Association for Savings and Investment South Africa (ASISA), there was a life insurance gap of R34.7 trillion and a disability insurance gap of R28.9 trillion in South Africa in 20191. This means that the average South African household was underinsured by 62% for life cover and 60% for disability cover.
The same study found that only 35% of South African households had any form of life insurance, and only 22% had any form of disability insurance in 2019.
The main reasons for not having insurance were affordability, lack of awareness, and distrust of the industry.
