Questions to ask yourself about your business...If you had died or become disabled yesterday, who would own and operate your business today?
Would your business be in a position to continue an income to your family in the event of your death? Would your estate have sufficient liquid assets to pay estate taxes and other estate settlement costs? If something happens to your partner, will you want to or be able to run the business with their spouse or children taking their place? Do you know who you would like to sell the business to in the future? If so, will they have the funding to purchase at a fair price? |
Buy-Sell Agreements using InsuranceBuy-Sell Agreements are contracts established to set up contingency plans for a business based on certain circumstances established in advance. These plans should be put in place to avoid the business being dissolved if that is not the desire. Assets and debts and business value all need to be addressed.
The Buy-Sell Agreement will outline the next steps if an owner/partner is disabled or deceased. There is a legal component, but there is also a funding component. Ensuring the legal component is in place is crucial to avoid business interruptions and legal battles that could result in significant expense, loss of revenue, and personal hardships. Structuring Life Insurance to fund these agreements can be an extremely efficient way to protect the company and your desires even if you are not able to keep the business going yourself. |
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