​Glacier Buy and Sell Agreements

Protect your family and the future of your business today.

Ensure that ownership of your business remains in the hands of current business partners in the case of death or disability.


  • Certainty that each shareholder’s shares will be purchased by the remaining partner(s) in the case of death or disability
  • It provides protection for the family of the deceased or disabled partners, because they receive the proceeds from the sale of shares from the policy pay-out as a future income
  • The purchase price and the way this price is determined is agreed
  • Certainty regarding the future ownership of the business
  • The proceeds are free from estate duty and capital gains tax if the agreement meets certain basic provisions – ask your financial planner
  • The remaining business partners are protected from the risk of outsiders joining the business, which may cause disruptions because of a lack of skills or incompatibility with the business culture
  • The business can carry on with minimal disruption
  • It's an inexpensive way of funding the purchase price

How does it work

  • The partners enter into an agreement where they undertake to purchase the interest of their fellow partners should any of them die or become totally and permanently disabled
  • Each partner will effect a life assurance policy on the lives of the other partners in the business. They will be the owner of the policy.
  • For tax reasons, it is crucial that only the owner of each policy pays the premiums on that policy
  • A life policy provides cash to facilitate the purchase of an interest in the business, thus ensuring business continuity and the financial welfare of a deceased's dependants
  • Each life insurance policy will provide the owner of the policy with the funds to purchase their proportion share of the interest of another partner in the event of that partner's death or disability

How much you will pay

The cost of the insurance will depend on your risk profile and the value of your business when you take out the policy.

Why it’s important to have the right insurance

If one of the co-owners of a business were to die or become disabled, what would happen to that person's share of the business? How do you ensure business continuity?

Buy and sell insurance is an 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, and there is certainly regarding the future ownership of the business.