In a climate of rising economic uncertainty, building true financial resilience means going beyond traditional savings.
True leadership is about building a resilient enterprise that can thrive for years to come.
In a climate of rising economic uncertainty, building true financial resilience means going beyond traditional savings.
Sean Hanlon, executive director at Bright Rock, says most entrepreneurs must focus on preparing for pivotal moments that could disrupt the company’s trajectory.
“For discerning executives, life insurance is a strategic tool for robust succession and continuity planning. A sudden absence can have significant repercussions if a strategic plan is not in place,” Hanlon says.
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Need for business insurance
He adds that properly structured business insurance ensures that leadership transitions are seamless, allowing the company to move forward with confidence. It provides the resources to avoid rushed decisions, protect the interests of stakeholders and preserve the company’s hard-won legacy.
“Executives can optimise their policies to evolve with the company’s growth and changing needs. This foresight ensures the right protection is in place when it matters most, offering value that extends far beyond a simple safety net.”
Types of business cover
Hanlon highlights that there are two important types of business insurance that every executive needs to consider.
- Buy-and-sell insurance ensures that if a partner passes away, the surviving partners have the capital to buy out their share. This enables a smooth transition, protects both business and family interests, and maintains operational stability.
- Key person insurance provides financial breathing room if a critical executive or founder dies or becomes disabled. This allows the company to recruit or upskill new leadership and restructure without financial strain, ensuring the business continues to move forward.
“Ultimately, the most effective insurance solution is one tailored to your company’s unique goals.”
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Succession in your strategy
“Embedding succession planning into your business strategy is a hallmark of exceptional leadership,” says Hanlon.
“Executives should collaborate with financial and legal experts to assess risk, identify key personnel whose loss would disrupt operations and structure insurance solutions that align with long-term corporate objectives.”
Start by asking:
- Who are the critical people driving our business forward?
- What would happen if I or a key partner were suddenly no longer there?
- How would our employees, clients and shareholders be impacted?
- How do I ensure that my financial dependants are financially compensated for my share in the business without them having to personally get involved if I die?
Peace of mind
Lindiwe Gumede, chief marketing officer at Metropolitan, says she has noticed that death comes with unexpected challenges, therefore, it is important to consider getting insurance so that you can leave your loved ones with peace of mind.
Touching on funeral policies, she said she noted that these policies are not just documents that activate on death, but agreements that protect families and ensure dignity beyond the grave.
“The greatest gift we can leave behind is not just financial security, but clarity, preparedness and peace of mind.”
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