A buy-sell agreement is a legally binding contract which states that at an owner or partner’s death, disability, retirement or otherwise separation from the company, the individual’s interest in the company must be sold back to the business or to the remaining owners at agreed upon terms.
These agreements are crucial for small and closely held companies, as in many cases, the death or disability of a business owner creates a significant financial burden on the business as well as the remaining partners. To limit this potential risk, most buy-sell agreements are funded with life insurance and or disability insurance policies.
Depending on the type of buy-sell agreement, the business itself or the individual partner(s) acquires a policy on each owner/partner so that at death or disability the funds needed to “buy out” the individual’s ownership interest are readily available.
Assure-All specializes in assisting in such matters.
Simply CLICK HERE and submit the quick contact form for immediate assistance.
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2 comments:
Many people feel that life insurance should be taken only when you get older, but in actuality life insurance taken at a young age provides many benefits. Even if there is nobody in your family who is dependent on you or if you think that your employer's insurance is sufficient for your family needs.
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Life insurance is a policy which I think everybody should plan to buy. In this post you have mentioned a very unique type of benefit that life insurance policy offers.
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