Buy-Sell Funding

Most partners and founders want their business to outlive them, creating a long-lasting legacy — and a company that continues to thrive after they are gone. Buy-sell agreements are one component of creating that security. These legal contracts between business partners determine how the business will be redistributed after one’s death. Drafted by an attorney, buy-sell agreements are used in conjunction with a buy-sell funding insurance policy, which is then structured to cover the costs associated with death benefits, disability, or potentially termination or retirement.

This type of coverage ensures financial continuity in the event of an untimely death, and can provide families and business partners alike with long-term peace of mind. If you own a business, securing a buy-sell agreement and complementary insurance policy to fund said agreement offers a responsible succession plan in the wake of the unexpected.

There are different types of buy/sell agreement life insurance plans, and it’s up to the owners to determine the right course for their business. The best fit is one that not only promotes a fair and seamless transfer of assets, but also assures the business remains intact and operational without disruption.