Insuring the sale of your business

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.

Transcript

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.

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