Insuring the sale of your business

Insuring the sale of your business with a buy-sell agreement

You have invested so much to make your business a success. But what if you decide to sell it? What if you die or become disabled?

Protect your hard work with a buy-sell agreement to help make sure the future sale of your business goes smoothly.


How a buy-sell agreement works

A buy-sell agreement is a legal agreement that determines what happens to your business if you die, become disabled or choose to sell.

You select who buys your business (possibly any co-owners), determine a fair purchase price and the way you, or your heirs, will be paid for your share.

There are different types of buy-sell agreements, but most use life insurance policies in some way as a funding source. Life insurance can be used to help pay off your business interest to you, or heirs, using the death benefit and potential cash value (from permanent life insurance).

Your tax advisor and attorney should review the buy-sell agreement to help make sure your wishes, and those of your business partner(s), are met.

Buy-sell agreements can help:

Secure an orderly transfer

You and those purchasing pre-determine specific outcomes to create stability for your business and peace of mind for you.

Access cash values for purchase

Using permanent life insurance can build accessible cash value that can help with the purchase price of the business.

Lock in fair market value

Buyers and sellers agree to a fair price now, rather than waiting until a future setback could potentially reduce the asking price.

A bit of guidance can help

Life insurance can help provide stability for your business that other products can’t. Finding the right fit is something you shouldn’t do alone.

Our financial professionals can help you determine if a buy-sell plan could help you, including:

  • The available options for your business structure
  • Which buy-sell plans cover your ownership stake
  • How much coverage you may need

Want to learn more about life insurance?

Whole life insurance LEARN Universal life insurance LEARN

Products issued by The Ohio National Life Insurance Company and Ohio National Life Assurance Corporation. Registered products distributed by Ohio National Equities, Inc., Member FINRA. Product, product features and rider availability vary by state. Guarantees are based upon the claims-paying ability of the issuer. Issuers not licensed to conduct business in New York. Withdrawals and loans may reduce the death benefit, cash surrender value and any living benefit amount.