For The Business Owner…

It’s important to be prepared for the death, illness or disability of a business owner/partner with a Buy/Sell agreement. Insurance is crucial to being sure that the business is protected along with the financial interests of each partners family.

A buy/sell agreement outlines what will happen to the shares of an owner, partner or shareholder who passes away, becomes ill or disabled. You can use life, critical illness or disability insurance to fund the agreement to purchase their shares rather than use personal or business funds. This can all be outlined in the contract. The insurance also has the ability to be corporately owned.

Through buying life, critical illness or disability insurance on each partner, the funds are available to be used for a buyout of their shares leaving the corporation protected along with providing a legacy for the deceased, ill or disabled owners family. The corporation may also use the insurance to purchase the shares, redeem them then “cancel” them to create a new split between the remaining parties.

We’re not only financial advisors, but also business owners at Southlake. We understand the importance of protecting what you’ve built. Let’s work together.