Planning for the potential loss of a business owner or partner is crucial to ensuring the prosperity of your business, and protecting the security of your family and the families of each business partner or co-owner.
The protection you need may be obtained through the implementation of a buy sell agreement. The buy sell agreement will specify what will happen to the interests of a deceased owner, partner, or shareholder. Should your company’s buy-sell agreement stipulate that the surviving owners or partners purchase the interests of the deceased, you can use life insurance instead of personal funds or business assets to fund the agreement.
Business owners may wish to purchase a life insurance policy on the life of each co-owner or partner so that funds will be available to complete a buy-out and provide the families of each partner or co-owner a secure source of funds for the value of their interest. Another option is that the business could acquire insurance on the life of each co-owner or partner and then use the insurance proceeds to purchase or redeem the deceased’s interest in the business.
We can help you navigate through the options and build a buy-sell insurance program designed to satisfy your unique objectives.