Life Insurance for Business
What is buy-sell agreement life insurance?
Buy-sell agreement life insurance funds a buy-sell agreement between business partners. If one partner dies, the insurance provides the funds for the surviving partners to buy out the deceased partner's interest. This prevents the deceased partner's heirs from becoming unwanted business partners.
Key Points
- Buy-sell agreement insurance: funds buyout of deceased partner's interest
- Prevents heirs from becoming unwanted business partners
- Types: cross-purchase or entity purchase
- Funded with life insurance on each partner
- An independent agent can help you structure a buy-sell agreement with life insurance