Business – Asset & Liability Protection
Building a succesful business is not easy today. It will always be the hardworks of partners for years or decades. Therefore, maintaining successful business is important to protect all partners’ interest.
Business Asset Protection Account (BAPA)
Raising debts through banks, such as buying business premises, factory, machinery, overdraft facility, working capital & etc is common used to expand business. The partners are usually the guarantors of all these facilities, hence it is essential to have adequate insurance for the partner’s life insurance. If unfortunate happens, it will transfer the company’s liability and risk to insurance company.
Key Man Insurance
The purpose of key man insurance is to help the company survive in the event of losing the important person (disablity/death) – who makes the business work or key revenue earner for the company.
The company can use the insurance proceeds for the continuity of expenses and cash flow for the business until a replacement can be found.
Life Insurance to fund Buy and Sell Agreement
Buy and sell agreements stipulate how a partner’s share of a business may be transferred in the event of the partner’s death.
The life insurance proceeds are used to purchase the deceased owner’s interest, This can ease the financial stress on the entity and the remaining owners.