Buy-Sell Agreement
A buy-sell agreement protects a business if the owner were to die, become sick or disabled, or if they elected to terminate their employment early or retire. Without a plan in place, a business and its owners could experience:
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Cash flow shortage
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Inability to pay debts
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Lack of income for the business owner, their family, and their employees
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Insufficient resources to pay required taxes - federal and state
The benefit of a buy-sell agreement cannot be overstated. A properly structured buy-sell can address and help eliminate potential problems or issues before they arise. For almost all business owners, a well-designed and funded business succession plan may help bring security and peace of mind for the business owner's personal and business family.
Key Person Insurance
Key person coverage is life insurance purchased by a business on an owner or an employee whose services contribute substantially to the success and continuity of the business. The insurance policy is owned and payable to the business. The insurance is in place to protect the business from the loss of a key person.
You can help cover the financial loss your business would experience at the death of a key employee by insuring your key people.
Key person insurance can be used to:
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Keep lines of credit open.
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Train another employee for the same specialized skills.
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Assure the completion of ongoing project initiatives.
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Provide access to the policy cash value through loans and withdrawals, which your business can use to meet