Protect the value you and your business partners have worked so hard to build, with a well-considered Buy/Sell agreement and tailored Life Insurance plan.

The unexpected illness or death of a partner can throw your business into disarray. Not only does it mean dealing with a sudden loss of income and expertise, but it raises the difficult question of how to compensate that partner or their family for their share in the business.

A death can put you in the awkward position of negotiating with distressed family members who are now co-owners and have neither the skills nor experience needed, to keep the business running. A prolonged illness can be equally difficult. Naturally you’d want to support a sick partner, but for how long can your business afford to pay them an income when they’re not in the office to keep sales coming in?

That’s when it’s crucial to have a well-considered Buy/Sell agreement, backed by an adequate Life Insurance plan.

What is a buy/sell agreement?

A Buy/Sell agreement is simply a formal, documented agreement between you and your business partners that clearly states what will happen if an owner leaves the business — whether they fall ill, become disabled, die, or simply decide they’ve had enough.

The agreement protects the interests of all the owners by setting out the exact circumstances when a partner’s share will be bought out, the agreed valuation method, and the buy-out process.

Why do you need insurance?

An agreement alone is not enough by itself. Not only do you need to agree on a buy-out, you also need to fund it. And without insurance, that can be difficult.

To understand why, think about what would happen to your business if you lost a key partner. Not only would you need every dollar of working capital to rebuild, you would also be in the worst possible position to approach the bank for a loan.

By combining your agreement with tailored Buy/Sell Insurance can ensure funds are at the ready, when you need them most. The Life Insurance plan will typically include Life and Total and Permanent Disability

Insurance (TPD) for each partner, with any payments used to fund the buy-out of their share, without draining the business of capital. That way, everyone’s interests are protected.

Find out more

Steadfast Life are business risk specialists, tailoring Buy/Sell Insurance solutions to our clients’ business needs. With the benefit of size and scale, we provide the necessary resources to ensure Buy/Sell

Insurance plans are comprehensive, cost-effective and effectively implemented.

Call the Insure 247 Team to arrange a appointment with the Steadfast Life Team


Steadfast Life Pty Ltd ABN 81 111 380 388 | AFSL 421904 Tel 02 8456 7866| Fax 02 9922 4859 |

This information is of general nature only and has been prepared without taking into account your particular financial needs, circumstances and objectives. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. You should obtain a copy of the product disclosure statement and also obtain independent professional advice before acting on the information contained in this publication.



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