Partner or Buy / Sell Protection Insurance

If you have a partner in business, you have a need for insurance so that in the event of death or disability, you can buy out your partner's interest without having to take out a loan or liquidate company assets. This is also important where children and taxes are involved.

To look at this coverage from a different point of view.  As a business owner, your business interest passes to your heirs when you die. Although your heirs inherit the business, they may not work in the business and may have no desire to do so. What happens to your business if you die?  

A properly funded buy/sell agreement using life insurance may ensure that the family receives a fair price for the deceased's stock and that the surviving stockholders will be able to continue the business. Business life insurance on each owner may ensure that there is cash to pay for the deceased's share of the business.  

It is best that there is a plan in place that spells out the choices and clear terms that allow the heirs and surviving partner to understand the transition and use the insurance dollars to fund and pay an agreed to price for the business assets.

The agreement ensures continuity of ownership in the business and fair treatment for both the buyer and the seller. These issues are easier to address when everyone is getting along in the business formation stage, rather than at a time when the partners have opposing interests. The solution is a carefully worded contract, typically called a Buy-Sell Agreement.

Target Insureds
Business Owners
Partners
Family Members
Shareholders

When considering your needs for insurance products for your home or business remember contacting Bennett Insurance Group is the right move.  Give us a call at 623-979-4140

Presented By:
Jim Bennett
Bennett Insurance Group
623-979-4140
http://jimbennettinsurance.com
jim@jimbennettinsurance.com