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Buy/Sell Agreements

With a buy–sell agreement that is funded by life insurance, the company or the individual co-owners buy life insurance policies on the lives of each co-owner. Thus, if you died, the company or the co-owners would receive the death benefits from the insurance policies on your life.

Take Care of Your Business & Your Family

A buy-sell agreement funded with life insurance will give you the confidence that your business and your family will be taken care of in your absence. Plus, the cost is small compared to the benefits.

What is a Buy/Sell Agreement?

A buy–sell agreement is a legally binding agreement between the co-owners of a business. It is sometimes referred to as a buyout agreement.

A buy-sell agreement governs the situation if a co-owner dies, is forced to leave the business, or simply chooses to leave the business. It serves as a kind of prenuptial agreement between the business partners and/or shareholders of a company—sometimes called a “business will.”

Funding a Buy-Sell Agreement With Life Insurance

With a buy–sell agreement that is funded by life insurance, the company or the individual co-owners buy life insurance policies on the lives of each co-owner.

Thus, if you died, the company or the co-owners would receive the death benefits from the insurance policies on your life.

Plus, your family would get a sum of cash as payment for your interest in the business. This provides financial support for them after your death and it also provides stability for the company.

Get a Buy/Sell Agreement Quote Today

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