Buy Sell Agreements and Insurance

Is Your Buy-Sell Agreement Adequately Funded?

A buy-sell agreement is a critical component to every business continuation plan. In the unfortunate event that a business owner, partner, or shareholder dies, the buy-sell agreement ensures that the business will remain intact and at the same time the family survivors will receive a fair cash settlement for the deceased individual’s interest in the business. Most buy-sell agreements are funded with life insurance which provides for immediate funds to buy out the deceased owner’s family at fair market value.