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:
You and those purchasing pre-determine specific outcomes to create stability for your business and peace of mind for you.
Using permanent life insurance can build accessible cash value that can help with the purchase price of the business.
Buyers and sellers agree to a fair price now, rather than waiting until a future setback could potentially reduce the asking price.
