Saturday, July 2, 2016

Partnership Insurance (A Case Study)

Partnerships are made in Heaven; But not all Partners survive the ride through HELL.
 – Sanjay Tolani

What is partnership insurance and who needs it?

Many companies are built on the symbiotic relationship between partners, therefore protecting the value of that partnership is the key to success. Unfortunately, many are unaware on how to protect this value in the event of a mishap like death of a partner or loss of income due to an illness.

The idea is to protect each other’s interest by purchasing an insurance plan; where the company gets enough liquidity to be able to buy out the share from the deceased partner’s family or provide liquidity to hire managers to continue taking care of the responsibility of an ill partner. This liquidity will protect the company, the partnership and the family in maintaining the status quo.

Investors who invest into a running business, may want to protect their investment, by insuring the working partner, as in the event of an unfortunate illness or death the business would be without a captain to steer the boat away from the rough waters; and could cause big losses to the investor.

What can you include in your plan?

The plan is designed according to a partnerships need. For example, it can include an income protection cover; in the event of a major illness; a partner is unable to work for a long period of time, the productivity of the company may significantly be reduced. The company would be provided with a lump sum amount of cash to sustain this “Loss of Income”; thereby buying time for the partner to recover.

It can also include the involvement of a family member of the deceased partner in the business as a part of the inheritance and succession plan, or hiring a new manager to assist with the responsibilities.

A well designed plan also needs to be reviewed with changing circumstance, changes in responsibilities and changes in succession.   

A Real Life Case Study

Company ABC Ltd. had 3 partners; John, Jim and Jack. The three partners shared different responsibilities in the business and held equal shares. The Auditors had valued the company at US$ 15 Million.

Unfortunately, when John passed away; the partners had to decide what the future of the company would be. Would John’s family continue to get profits in equal share as the partners? Who will undertake the burden of John’s responsibility? If the partners want to buy out John’s shares; where will the liquidity of US$ 5 Million come from? Will the wife sell the shares?

Partnership insurance opens up many ways to handle such a situation. Discussing a succession plan, inheritance and liquidity to buy out shares can all be covered in the Partnership Insurance Document.

If you do care about the future of the business you are building, ensure to insure the partnership.  Please share this information with everyone around you. 

#sanjaytolani #speaker #author #28000days #mdrt #topofthetable #partnership #insurance #familyprotection #lifeinsurance #incomeprotection

Sunday, April 10, 2016

Health Insurance for Parents & Children living in Dubai

A lot of my friends had decided to send parents back to the home country from Dubai due to the compulsory medical insurance for them which is effective 30th June 2016 as it is very expensive to get coverage for senior aged parents.
Dubai Health Authority in collaboration with the insurer's have designed a basic product for "Sponsored Parents ONLY" . 
This is in line with the Health Authority Directive that everyone in Dubai should have health coverage by 30th June 2016.
If your "Parents" are sponsored by you in Dubai; you can now buy the basic DHA approved Medical Insurance for them for a flat rate of only AED 2500,
if your "Wife" is on your sponsorship the flat rate for the basic DHA Medical Insurance plan is AED 1750;
and for your "Children" on your sponsership the flat rate for the basic DHA Medical Insurance plan is AED 650.
If you have any questions on the above plans please email it to:


Monday, March 7, 2016

Summary of Economic News through February 2016

–      Global equities came under pressure in February, posting a negative return in US dollar terms. Perceived safe havens rallied for a second consecutive month with Treasury, gilt and Bund yields falling.   

–      US equities registered a small negative return. Investors deferred expectations for further rate increases after Federal Reserve chair Janet Yellen warned that global financial market turbulence could set back US growth.

–      In the eurozone, weak inflation data reinforced expectations of further monetary policy easing. In the UK, sterling came under pressure after a referendum on the UK’s membership of the EU was called for 23 June.

–      Japanese equities posted sharp declines amid doubts over the success of “Abenomics”, a stronger yen and concern over the slowdown in China.

–      Emerging markets outpaced their developed world counterparts. Expectations for stimulus measures in China spurred a rally in commodity-linked stocks. 

Sunday, January 3, 2016

Why do expats need to buy Life Insurance?

Without the right protection, families are sadly left with a burden of many expenses in the event of a tragedy. However, a proper life insurance policy can provide important funds to ensure the future of an expat’s family. Some of these expenses include:
1. Paying off obligations, permitting the family to be free from money related commitments to others
2. Resolving the estate, including paying legal costs
3. Giving resettlement back to the nation of origin
4. Covering future educational costs
Here are 3 ways how life insurance benefits expats and their families:
1. Provides Financial Stability
The aftermath of a family tragedy can be a troublesome, unpredictable period. It can take quite a long while for a family to fiscally settle after the death of the essential salary worker.
With a life insurance policy, a family can have the savings it needs to bolster its finances during resettling. This can give the family a cushion to get a stable wage, permit the family to stay in its present home, or supplant lost retirement funds.
2. Secures the Family's Future
Some protection policies can not only cover the family’s primary income earner, but the spouse as well. Insuring the spouse on the off-chance something happens, permits one insurance policy to do the work of two. While one naturally hopes no sudden tragedies occur, this layer of protection guarantees a family's financial future regardless of which spouse may unexpectedly pass.
3. Helps Ensure a Bright Future for Your Children
A primary reason why expats select their careers is to provide stability for their families. As expats spend their time overseas, there is a higher risk something unforeseeable could happen. Obtaining an insurance plan that meets the needs of an individual and his or her family can provide essential funding after a sudden tragedy. The right type of policy can help cover educational expenses, weddings, and other important events in the children’s lives.
What to Look for in a Life Insurance Policy
Finding the right life insurance policy requires a careful evaluation of a family’s needs, the type of insurance needed, and other important factors.
Expats should consider the following when choosing a policy:
1. Medical underwriting limits
2. Borderless coverage, especially for expats and frequent international travelers
3. Benefit limits
4. Whether premiums are fixed throughout the policy term
5. The type of coverage needed, such as Deaths All Causes as a result of illness, accidents, and acts of war and terrorism; or Deaths Natural Causes in high-risk areas
6. Eligibility age
7. Types of exclusions
8. Term renewals (for example, every year or every 10 years)
How Much Coverage Should I Get?
According to the Life Insurance and Market Research Association, experts recommend having enough life insurance to replace income for 7 to 10 years, but each individual must calculate their beneficiaries’ future financial needs. Several factors (such as age, children, mortgage, income, etc.) must be considered to determine the appropriate amount of life insurance coverage.
Source: Clements Worldwide
To know more: please read "28000- Make Every Day Count"
Available on:

Saturday, January 2, 2016

What is your Biggest Asset?

You create the Assets for your estate and family...
What is more important? You or the Assets?....
NOW...Which is insured? .....
Research suggests that most people are insured less than the assets they own... just shows how much we ignore the source that builds the assets. 

Insure yourself and the income which builds your estate.