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Buy & Sell
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What is Buy and Sell Insurance ?
A buy-and-sell insurance policy is a type of life insurance policy that is designed to help business owners protect their interests in the event of death or disability. Under a buy-and-sell agreement, each business owner takes out a life insurance policy on the lives of the other owners. In the event of the death or disability of an owner, the proceeds from the life insurance policy are used to buy out the deceased or disabled owner's interest in the business. This ensures that the business can continue to operate without interruption and that the surviving owners are not left with a financial burden.
Benefits of Buy and Sell
Financial Security
Ensures surviving owners are financially secure in case of a co-owner's death or disability by providing funds for a smooth ownership transition.
Continued Business Operation
Maintains business continuity by outlining clear procedures for ownership transfer, preserving momentum and customer relationships.
Prevention of Disputes
Minimizes disagreements among surviving owners by establishing predetermined terms for ownership transfer, including valuation methods and triggering events.
Tax Benefits
Offers tax advantages through structured agreements, potentially reducing tax liabilities for departing and remaining owners, and mitigating estate taxes.