Buy-Sell Insurance Solutions
Protect your business succession with properly funded buy-sell agreements
Schedule ConsultationWhat is Buy-Sell Insurance?
Buy-sell insurance is a critical component of corporate planning that provides the funding mechanism for a buy-sell agreement between business partners. When a triggering event occurs—such as death, disability, retirement, or departure—the insurance proceeds enable the remaining partners to purchase the departing owner's share.
This essential business insurance protects both the business and the families of business owners by ensuring business continuity and fair compensation.
Common Triggering Events:
- Death of a business partner
- Critical illness or disability
- Retirement or voluntary departure
- Divorce or bankruptcy
Why Your Business Needs Buy-Sell Insurance
Protect your business investment and ensure smooth ownership transitions
Business Continuity
Ensure your business continues smoothly when a partner exits, retires, or passes away.
Funding Mechanism
Provides immediate funds to buy out a departing owner's share without depleting business capital.
Clear Agreement
Establishes a predetermined valuation method and transfer process in advance.
Family Protection
Protects the departing owner's family by ensuring fair market value for their business interest.
Our Buy-Sell Insurance Process
A comprehensive approach to business succession planning
Business Valuation
We help determine your business's current value and establish a fair valuation method.
Agreement Structure
Create a comprehensive buy-sell agreement that protects all partners and stakeholders.
Insurance Funding
Implement life and disability insurance policies to fund the buyout when needed.
Regular Reviews
Periodic reviews to ensure coverage keeps pace with your business growth.
Types of Buy-Sell Agreements
Cross-Purchase
Each partner purchases life insurance on the other partners. Upon death, surviving partners use the proceeds to buy the deceased's share.
Best for: Small partnerships (2-3 partners)
Entity Purchase
The business itself owns insurance policies on each owner. The company uses proceeds to redeem the deceased owner's shares.
Best for: Multiple partners (4+)
Hybrid
Combines elements of both cross-purchase and entity purchase to optimize tax benefits and administrative simplicity.
Best for: Complex ownership structures
Protect Your Business with Buy-Sell Insurance
Don't leave your business succession to chance. Let our corporate planning experts design a comprehensive buy-sell insurance strategy tailored to your business.
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