Buy-Sell Agreements
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Buy-Sell Agreement & Life Insurance

The death or long-term disability of a key employee can be devastating to a company on a personal and professional level. Thankfully, you can protect your business financially from the risk of loss with a Buy-Sell Agreement, by covering this key individual with a business-funded life insurance-style policy which will pay the business in the case of loss to cover expenses associated with recruiting a replacement and business lost during this time period. Additionally, if the key individual is part-owner, a Buy-Sell Agreement can be drawn up to pre-define what happens to the individual's ownership percentage at the time of their death.

Key Points of Buy-Sell Agreements

  • Acts like a "will" for your business
  • Funded by the business and the business receives any payouts to offset losses
  • Buy-Sell Agreements can prevent unqualified individuals from inheriting decision-making positions, putting the company at risk
  • The agreement can offer additional tax benefits to the company