Business Insurance
Short-term insurance in the small business arena is not limited to covering physical assets but extends to key individuals who are critical to the success of that small business.
A small business owner tends to rely on a few key people to achieve success. This could take the form of a specialist, a partner or the business owner him- or herself. Old Mutual offers risk cover options for such individuals - these can be found in the key people insurance section.
Old Mutual's solution for general insurance (e.g. cover for buildings, machinery and third party) is provided by one of our sister companies Mutual & Federal.
Mutual & Federal also offers various business specific schemes which are specialised insurance products for specific areas of the market such as dentists, doctors, pharmacists, florists and vets.
Key People Insurance
Unlike corporate or institutions which employ a pool of skilled individuals, the small business owner relies on a handful of key individuals. These individuals are critical to the success of the business.
It is only natural that you would like to ensure business continuity should anything happen. The following products from Greenlight offer the cover you need for peace of mind.
These are:
An owner of a company often has to provide personal security for a loan taken out by the business. But what happens to the debt should this person die or become disabled?
The problem for the owner is that he or she will be personally liable for the debt if the business is unable to repay the loan. Should the owner die before the debt has been settled, the creditor can claim the outstanding money from his/her estate.
This has an impact on the business owner's heirs and dependents. It could even result in the estate being declared insolvent if debts exceed assets.
Worse still, if the owner becomes disabled, the creditor has the right to claim the amount from him or her personally.
Co-owners may feel the impact too. They may be forced to sell some of the business' assets if the funds cannot be raised via traditional means.
The solution
Business liability protection is risk insurance that a business takes out on the life of an individual who stands surety for the debts of the business. The amount of cover should be equal to the loan amount.
How does it work?
For the owner
Buy & sell insurance is risk insurance that business co-owners take out on one another's lives to enable them to buy a deceased or disabled co-owner's share in the business. It is one step closer to ensuring business continuity.
The loss of a co-owner to death or disability could impact your business in the following ways:
Buy & sell insurance enables business continuity.
It works as follows:
Company X has three co-owners: A, B and C. The insurance is exercised in three ways:
For the remaining co-owners:
Old Mutual offers businesses a range of investments that are ideal places to invest company profits and expose them to the potential for market related growth.
Depending on the amount of profit your company has to invest there is a choice of:
Old Mutual Unit Trusts
From as little as R500.00 per month, unit trusts offer an excellent, affordable way to expose your company profits to the markets. The high levels of liquidity inherent in a unit trust portfolio will enable you, as the business owner, to access capital if required.
Old Mutual Investment Group (SA)
The Old Mutual Investment Group (SA) (OMIGSA) offers a selection of core, specialist and alternative investment funds.
Staff Benefits
Employers of choice recognise that people should be at the centre of their business. By doing this they not only enrich and improve the lives of their staff - they ensure the ongoing success of their business.
To this end, Old Mutual has produced innovative products and services to assist business owners in offering staff the best possible employee benefit solutions.
The two key staff benefit offerings from Old Mutual are:
Medical Aid
Old Mutual Healthcare provides access to one open scheme and manages a number of closed schemes. The administrative services on offer ensure that you are able to offer your employees the flexibility of choice at competitive pricing without compromising quality of service.
Retirement Funding and Administration
The retirement solutions are varied and can be tailored to suit not only your business requirements (administration, trusteeship, investment choice) but also your staff members' individual retirement needs.
Group Assurance
Old Mutual Group Assurance is a trusted name in risk benefits, with well over R1.7 billion of insurance premiums annually, covering more than one million South Africans. With 23% of the South African insurance market, Old Mutual is one of the most respected providers of group risk products in the country.
Our risk benefit solutions include:
Short-term insurance in the small business arena is not limited to covering physical assets but extends to key individuals who are critical to the success of that small business.
A small business owner tends to rely on a few key people to achieve success. This could take the form of a specialist, a partner or the business owner him- or herself. Old Mutual offers risk cover options for such individuals - these can be found in the key people insurance section.
Old Mutual's solution for general insurance (e.g. cover for buildings, machinery and third party) is provided by one of our sister companies Mutual & Federal.
Mutual & Federal also offers various business specific schemes which are specialised insurance products for specific areas of the market such as dentists, doctors, pharmacists, florists and vets.
Key People Insurance
Unlike corporate or institutions which employ a pool of skilled individuals, the small business owner relies on a handful of key individuals. These individuals are critical to the success of the business.
It is only natural that you would like to ensure business continuity should anything happen. The following products from Greenlight offer the cover you need for peace of mind.
These are:
- Key Person Insurance.
- Business Liability Protection.
- Buy & Sell Insurance.
An owner of a company often has to provide personal security for a loan taken out by the business. But what happens to the debt should this person die or become disabled?
The problem for the owner is that he or she will be personally liable for the debt if the business is unable to repay the loan. Should the owner die before the debt has been settled, the creditor can claim the outstanding money from his/her estate.
This has an impact on the business owner's heirs and dependents. It could even result in the estate being declared insolvent if debts exceed assets.
Worse still, if the owner becomes disabled, the creditor has the right to claim the amount from him or her personally.
Co-owners may feel the impact too. They may be forced to sell some of the business' assets if the funds cannot be raised via traditional means.
The solution
Business liability protection is risk insurance that a business takes out on the life of an individual who stands surety for the debts of the business. The amount of cover should be equal to the loan amount.
How does it work?
- The bank gives the business a loan.
- The owner stands surety for the loan.
- The owner and the business agree that the business will repay the balance of the loan should the owner die or become disabled before the loan is fully repaid.
- The business effects a Greenlight benefit on the owner's life (which should ideally include life and disability cover).
- On the owner's death or disability the Greenlight proceeds are paid to the business.
- The business repays the loan and the owner (or the estate) is released from surety obligations.
For the owner
- Personal assets are released from any liability on death or disability.
- The estate is finalised with less hassle and the dependants remain unaffected.
- The business is protected from any adverse effect on its creditworthiness as a result of death or disability of the person who stands surety.
- The outstanding liability is settled in full without burdening the business' financial resources.
Buy & sell insurance is risk insurance that business co-owners take out on one another's lives to enable them to buy a deceased or disabled co-owner's share in the business. It is one step closer to ensuring business continuity.
The loss of a co-owner to death or disability could impact your business in the following ways:
- The existence of the business may be in jeopardy.
- Credit facilities may be affected adversely.
- Outsiders may obtain a controlling interest.
- Remaining co-owners may be unable to afford the deceased's interest or shares.
- The business interest may be sold below fair market value.
Buy & sell insurance enables business continuity.
It works as follows:
- The co-owners enter into an agreement where they undertake to purchase the interest of their fellow co-owners should any of them die or become disabled.
- A co-owner affects a Greenlight benefit on the life of another co-owner and vice-versa. Each co-owner will consequently own a benefit on the life of the other and pay the premiums under the benefit of which they are owner.
- A Greenlight benefit provides the cash to facilitate the purchase of an interest in the business, thus ensuring business continuity and the financial welfare of a deceased's dependants.
- When more than one co-owner is involved, the benefit on the life of each co-owner will be jointly owned by the other co-owners, proportionate to their interest in the business.
Company X has three co-owners: A, B and C. The insurance is exercised in three ways:
- Co-owners A & B (the contracting parties) insure the life of co-owner C.
- Co-owners A & C (the contracting parties) - insure the life of co-owner B.
- Co-owners B & C (the contracting parties) insure the life of co-owner A.
For the remaining co-owners:
- No risk of new co-owners joining the business who might be unskilled or incompatible.
- An inexpensive way of funding the purchase price.
- The business can continue with minimal disruption.
- An immediate cash payment, which can substitute the income lost as a result of the death or disability of a breadwinner.
- A negotiated purchase price negotiated by the parties concerned ensuring that the co-owner or his/her dependants receive the full value of the business interest.
Old Mutual offers businesses a range of investments that are ideal places to invest company profits and expose them to the potential for market related growth.
Depending on the amount of profit your company has to invest there is a choice of:
Old Mutual Unit Trusts
From as little as R500.00 per month, unit trusts offer an excellent, affordable way to expose your company profits to the markets. The high levels of liquidity inherent in a unit trust portfolio will enable you, as the business owner, to access capital if required.
Old Mutual Investment Group (SA)
The Old Mutual Investment Group (SA) (OMIGSA) offers a selection of core, specialist and alternative investment funds.
Staff Benefits
Employers of choice recognise that people should be at the centre of their business. By doing this they not only enrich and improve the lives of their staff - they ensure the ongoing success of their business.
To this end, Old Mutual has produced innovative products and services to assist business owners in offering staff the best possible employee benefit solutions.
The two key staff benefit offerings from Old Mutual are:
Medical Aid
Old Mutual Healthcare provides access to one open scheme and manages a number of closed schemes. The administrative services on offer ensure that you are able to offer your employees the flexibility of choice at competitive pricing without compromising quality of service.
Retirement Funding and Administration
The retirement solutions are varied and can be tailored to suit not only your business requirements (administration, trusteeship, investment choice) but also your staff members' individual retirement needs.
Group Assurance
Old Mutual Group Assurance is a trusted name in risk benefits, with well over R1.7 billion of insurance premiums annually, covering more than one million South Africans. With 23% of the South African insurance market, Old Mutual is one of the most respected providers of group risk products in the country.
Our risk benefit solutions include:
- Group Life Assurance.
- Disability Cover.
- Family Cover.
- Credit Assurance.
- Specialised Solutions.