INSURING THE LIFE OF YOUR BUSINESS WITH A BUY/SELL AGREEMENT
What is this buy/sell thing all about?
Life insurance is designed to help protect a household from the financial hardships that may follow at the death of a wage earner. Situations like these are common and they paint the picture of what life insurance is all about to the general public.
But how will a death affect a small business? Businesses are entities…sure they do not breath, eat or yell at you, but they are entities with lives that can end early or continue indefinitely.
One way of safeguarding a business is to create a buy-sell agreement. A buy-sell agreement is a contract between different entities within a corporation to buy out the interests of a deceased or disabled member. A buy-sell agreement also can protect the business from loss of revenue and cover the expense of finding and training a replacement.