To avoid the financial hardship caused by the death of a partner/owner of a business buy-
sell agreements are used by members of a partnership or stockholders in closely-held corporations to assure that funds are available to allow remaining owners to buy the deceased's portion of the business.
It generally prohibits one partner from selling his/her portion of the company without approval from the other partner or partners and provides the basis for any potential sale or buy out from a partner or partners.
A life insurance, disability insurance and critical illness insurance are some of the smart choices in the market to fund a buy-sell-agreement.
Advantages of Buy-Sell Agreements
The proceeds are immediately available upon death, disability or if a critical illness strikes.
The proceeds are not subject to corporate creditor claims or the corporate alternative minimum tax.
Can spell out the terms of payment.
Provide a smooth transition of complete control to those who are going to keep the business running.
If you don’t have a buy-sell agreement and want to discuss it with an experienced Financial Advisor or Insurance Agent, please fill out the following form. We will contact you within 24 hours.
LIFE INSURANCE QUOTES
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PLEASE NOTE: By law, agents and brokers offering life insurance products cannot charge fee for service from a client. Therefore, your premium is exactly what an insurance company quotes.