Overview
This type of policy offers a way to use life insurance to buy out a partner upon their unexpected passing. This option helps reduce the stress and upheaval that often follow this kind of unfortunate event. There are two main types:
- A cross-purchase plan is when each owner takes out a life insurance policy on all of the other business partners. Then if an owner were to pass away the policies taken out on that individual could be used to purchase their portion of ownership in the company.
- Entity purchase, otherwise known as a stock redemption plan, involves an agreement where the business buys life insurance policies on each of the owners and then each owner agrees to sell their amount of investment in the company. This way if an owner were to pass away, the business could use the policy to purchase that owner’s portion in the company.
- Protection of Busines Future
- Assurance for Customers, Creditors, & Employees
- Create's Fair Market Value Exchange
- Possible Tax Advantages
- Provides Heirs Cash
- Guarantees Heirs a Buyer
- and more. . .
Life & LTC Insurance
More life & ltc coverage
Often reviewed alongside buy/sell life.
Individual LifeCover you and your family in the case of a death.
Long-Term CareProtects your loved ones when care is needed for a long period of time.
Disability IncomeReplaces about 60% of your gross income if you become sick or injured.
Tax-Free Retirement PlansA policy can be an avenue to help grow your retirement fund tax-free.
Business LifeProtects those that are a vital part of your business’s continuation.
Key Man LifeLife insurance policy on a person considered critical to the business.