Partnership & Shareholder Protection
Buy-Sell Agreement Insurance
If your business has more than one shareholder, a buy-sell agreement backed by insurance is the difference between a clean transition and a multi-year legal mess. We set both sides up properly.
What is Buy-Sell Agreement Insurance?
When a shareholder dies or is permanently disabled, their shares pass to their estate or family — often to people who have no interest in or knowledge of the business. Without a funded buy-sell agreement in place, the surviving shareholders are stuck either accepting a new co-owner they didn't choose, or scrambling to fund a buyout under pressure.
A properly structured buy-sell agreement, funded by life and disability insurance on each shareholder, fixes this. The insurance pays out on the triggering event, the surviving shareholders use the payout to buy the deceased's shares from their estate at a pre-agreed valuation, and everyone gets what they're owed cleanly.
We work alongside your attorney to draft the agreement, then arrange the underlying life and disability cover at the right amounts, on the right ownership structure, with the right beneficiary nominations. Most schemes we inherit from other brokers have at least one technical flaw that would compromise a payout — we audit and fix.
Who is this for?
- Companies with 2+ shareholders
- Closed corporations with multiple members
- Family businesses preparing for generational transition
- Joint ventures and SPVs
- Businesses with a key working partner
- Firms whose existing buy-sell needs reviewing
What's covered
Buy-Sell Agreement Drafting
Working with your attorney, we ensure the agreement aligns with the insurance structure.
Shareholder Life Cover
Life insurance on each shareholder, structured to fund the buyout cleanly.
Disability Buyout Cover
Cover that triggers on permanent disability — not just death.
Business Valuation
Independent valuation methodology to set the buyout price annually.
Cross-Purchase or Entity Purchase
We structure the right model for your tax and ownership profile.
Annual Policy Reviews
Sums insured re-valued each year as the business grows.
Frequently asked questions
Who should own the policies — the company or the shareholders?
It depends on the buyout structure. Cross-purchase agreements have shareholders own policies on each other; entity-purchase has the company own them. Each has tax and execution implications — we model both for your situation.
How is the buyout price determined?
Usually a pre-agreed valuation formula in the buy-sell agreement — net asset value, multiple of EBITDA, or a fixed amount reviewed annually. The insurance amount is sized to match.
What if a shareholder is uninsurable?
There are workarounds — sinking funds, deferred payment schedules, partner buyout via business loan. We design the structure around what's actually achievable for each shareholder.
Do I need a separate disability buy-sell?
Almost always yes. A shareholder who is permanently disabled but alive can't be bought out by a life policy. Disability buyout cover is a separate product that triggers the same buyout mechanism.
Ready to talk?
Get a no-obligation quote tailored to your situation. We compare the Namibian market and recommend what fits.