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Insurance & Takaful Advisor by RR, No. 20A Jalan Austin Height 3/2, Taman Austin Height, Johor Bahru (2026)

29/03/2023

How Do you Protect Yourself in A Partnership Business?

The main reason for setting up a policy is for surviving partners to buy a deceased partner’s interest in a partnership and retain control. Without the funds in place to purchase the interest, there is uncertainty if the shares pass to the deceased’s estate whose family members or beneficiaries may be either passive or aggressive shareholders in the partnership practice.

Having the capital available from a policy to purchase the outstanding shareholding means no additional funds need raising. It means that there is no disruption to the day-to-day running of the business, and it means that there is a certainty for the staff in the practice and business owners alike.

Welcome Enquiries ,

Roslida Razali
+60 19-751 8152
Financial & Islamic Wealth Planner

29/03/2023

What is Partnership Insurance.

Partnership Insurance is a specific type of business protection insurance structure. It provides liquidity to a business to buy the deceased partner’s shares from their next of kin.

Welcome Enquiries,

Roslida Razali
+60 19-751 8152
Financial & Islamic Wealth Planner

29/03/2023

I am a Business Owner. Why do I need Life Insurance?

If you are a business owner, you may be worried about how the business will continue when you pass away. There are many ways in which life insurance can be used as part of a business continuation strategy to ensure that the business continues to thrive, even upon any future ownership transition.

Life insurance needs for business owners can vary quite significantly depending on a variety of factors. Some things to consider include:

Outstanding loans
Ongoing business expenses
The cost of replacing the majority shareholder’s position
Tax costs upon death

Life Insurance can pay off business debts if you die, help heirs to pay off estate taxes, or fund a buy-sell agreement that allows a business partner to buy out your share.

Welcome Enquiries,

Roslida Razali
+60 19-751 8152
Financial & Islamic Wealth Planner

29/03/2023

KEYMAN INSURANCE.

Key Person Insurance is an ideal solution to provide coverage for business owners, partners, critical employees and more. A “key person” is normally a person who is critical to the function of your business, because he/she contributes greatly to the survival, day-to-day operation or profitability of a business.

Welcome Enquiries,

Roslida
Financial & Islamic Wealth Planner
+60 19-751 8152

21/03/2023

What is key person insurance?

Key person insurance is an insurance policy that a company purchases on the life of someone who is vital to the success of the business. This person may provide money to support its operation, special skills, or both. A key person may be:

a business owner,
a partner, or
an employee.

Key person insurance can be life insurance, critical illness insurance, or disability insurance. And the company is the beneficiary* of the policy and pays the premiums.

Kindly Contact for More Details,

Roslida Binti Razali
Financial & Islamic Wealth Planner
+60 19-751 8152

21/03/2023

Understanding Business Insurance.

It is especially important for small business owners to carefully consider and evaluate their business insurance needs because they may have more personal financial exposure in the event of a loss. If a business owner does not feel he or she has the ability to effectively assess business risk and the need for coverage, they should work with a reputable, experienced and licensed insurance agent.

Kindly Contact for more details,

Roslida Binti Razali
Financial & Islamic Wealth Planner
+60 19-751 8152

21/03/2023

Partnership Insurance For The Family Business

For a family business, this is an even harder conversation to have. You face not just the possibility of the loss of a business partner and perhaps a friend, but also a loved one.

Hard as it may be, it is still an imperative conversation for family members who are running a business together to have.

The advantages are all-around. The heirs of a deceased business partner have the chance to opt-out of the business. And they would be able to do this without any loss of their inheritance.

And the surviving family members who are a part of the business would have a much-needed safety net to help pull the business through what is likely to be a difficult time.

Kindly Contact For More Details,

Roslida Binti Razali
Financial & Islamic Wealth Planner
+60 19-751 8152

21/03/2023

What can business insurance do to help a business?

Not only does it help protect business assets, income and property, it also provides a financial safety net.

For example, In a nutshell, partnership protection insurance provides a “safety net” of sorts in the event that one of the business partners suffers a serious illness, becomes permanently disabled or passes away.

Contact For More Details,

Roslida Binti Razali
Financial & Islamic Wealth Planner
+60 19-751 8152

21/03/2023

Why do you need Partnership Protection Insurance?

Setting out an agreement that dictates what will happen to a partner’s interest in a business in the event of their death is one step, but the remaining partners still need the money to fund the purchase.

Without Partnership Protection Insurance in place, these funds would either need to be found within the business, or from personal savings.

In either case, if the interest is worth a significant amount, it’s unlikely the funds would be available without putting the business’ or each individual partner’s finances at risk.

With Partnership Protection Insurance, there’ll be a guarantee of funds available to ensure the smooth purchase and transition of any interest back to the remaining partners so they can maintain control of the company.

Contact for more details,

Roslida Binti Razali
Financial & Islamic Wealth Planner
+60 19-751 8152

21/03/2023

How to set up Partnership Protection?

The first thing to be aware of when setting up Partnership Protection, is who will inherit a partner’s share in the business and what they’ve set out in their Will.

Understanding who the interest in the business will be gifted to can help ensure the purchase of the interest can happen quickly - as each party has already been identified.

Second, it can also help make the process more tax efficient and ensure that any business property relief for inheritance tax is applied.

When setting up Partnership Protection, the arrangement should have a number of key elements.

First, it should state how each partner’s interest in the company will be calculated and valued, as well as the right of each party when it comes to the sale and purchase of the interest.

This calculation method needs to be agreed up front to avoid any disputes down the line.

Second, each partner will need to take out insurance cover (Partnership Protection Insurance). We’ll cover this in detail in the next section, but this essentially ensures the funds are available to the remaining partners to buy the interest back when the time comes.

Finally, it should be structured to take advantage of the business property relief and inheritance tax breaks we’ve already mentioned.

When it comes to the type of Partnership Agreement you’ll use, there are a few to choose from.

Which you choose will depend on preference and the individual circumstances of your company.

Contact for more details,

Roslida Binti Razali
Financial & Islamic Wealth Planner
+60 19-751 8152

21/03/2023

Why is Partnership Protection Important?

The main reason you should have a partnership agreement along with insurance, is because of the rules surrounding partnerships in the event of a death or illness.

According to the Partnership Act 1890, without an agreement or insurance in place, a partnership will be automatically dissolved in the event of a death - even if multiple partners remain.

The outgoing partner's interest will typically be calculated based on their share of the business and its assets, with the amount going to their beneficiaries - usually their family.

This could potentially lead to a few scenarios that are not ideal for the business, or the remaining partners.

For example, the beneficiaries of a partner’s interest may have no knowledge or experience in the company, but could retain the interest they inherit and take a share of the company’s profits.

They could do this even if they have no involvement in the running of the company.

For the remaining partners, they would want to buy this interest in the company back to retain control of the company and not split profits with a third party who has no involvement in the business.

For the beneficiaries of any interest, they might not want any involvement in the company, but would still want a fair valuation for the interest.

With Partnership Protection in place, they would sell their interests to the remaining business partners, and get that fair value they want.

Contact For More Details,

Roslida Binti Razali
Financial & Islamic Wealth Planner
+60 19-751 8152

21/03/2023

When you go into business with another person there’s always an element of risk involved.

One of the big risks that no-one wants to think about, is what would happen to the business if one of the partners became critically ill and could no longer continue in the company, or one of the partners died.

During what would already be a personally tragic situation, it could pose a serious risk to the company’s future, as well as the livelihoods of the people working there.

Partnership Protection Insurance can help remove many of the uncertainties surrounding a company’s future in the event of the illness or death of a partner, ensuring a smooth transition of control to the remaining partners.

Contact for more details of business insurance.

Roslida Binti Razali
Financial & Islamic Estate Planner,
+60 19-751 8152

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