Replacement of income at death

The family of an owner is seriously exposed to a financial shock that follows the death of that owner. The income that the owner drew from the business cannot continue, since the owner can no longer contribute to the business.

If the income is earned as a salary, this salary stops at the death of the owner, leaving the family without income. This is especially important if the business is going to close down or if the family cannot harvest the true value of the business after the death of the owner.

Income Replacement Solution (at death)

With the income replacement solution, the objective is to minimise the financial shock on the family of the owner by replacing his/her income that he/she drew from the business.

This can be achieved by capitalizing the existing income of the owner, and funding the capital with life assurance. This creates funding in the form of a capital amount that if applied, will provide the family with an income.

Contact the Sanlam Business Market Call Centre (Tel: 0860 100 539) at Sanlam or e-mail: to discuss your unique circumstances with an accredited financial advisor.

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