Life Insurance for your Business - Buy Sell Agreements.

A Buy-Sell Agreement is a legally binding contract that outlines how a partner's shares of a business may be reassigned if that partner dies or leaves the business. Generally, this kind of agreement would see the available shares (or the portion of the demised partner's business) sold to the remaining business partner(s) and Life Insurance Policies are often used to fund the potential buyout in the unfortunate event of a partner's passing.

In some cases, the financial value of a demised partner's shares might be significant and can impact the bottom line and operations of a business if business funds are suddenly required to buy out the shares.

By leveraging Life Insurance in this manner, a business can navigate share ownership transitions without resorting to external borrowing or using their own internal funds and can ensure where applicable, that the demised partner's beneficiaries are able to receive the financial proceeds of the sales of the demised partner's shares in a timely manner and without difficulty.