Do you share ownership in a business? If so, what would happen to your company if one of the owners were to pass away? A buy-sell agreement funded with life insurance could be the exact protection needed to keep your business running.
Buy-sell agreements are arrangements that protect business partners in the event one of the partners dies. These agreements are usually set up with an attorney to ensure that all partners have a life insurance policy in force to protect their share of the business. Upon the death of one of the partners, the remaining partner (or partners) would receive a death benefit to buy out the deceased’s share of the business. This is a great option for business owners who are ready to start planning for the protection of their business. Buy-sell agreements function as security and peace of mind when thinking about the future of your partners and employees. Think about it: Would your business be able to keep up with payroll, rent and other business expenses without one of the owners? Term life insurance is the perfect vehicle for this type of coverage. With simple policy features and affordable rates, business owners are able to take action and get their safeguard established. Auto-Owners Life insurance Company offers term life insurance policy options that can function as a means of protection for small-business owners. If you’re a business owner, you may also want to work with a financial adviser or attorney to put the actual buy-sell agreement in place. These agreements an be as formal or informal as you would like. Contact our agency for more information on how you can get life insurance protection in place for your business.