Buy/Sell Funding - Insuring the life of your business : Beaini Financial Solutions

Buy/Sell Funding - Insuring the life of your business

A buy-sell agreement is a contract among business owners. At the loss of an owner, the business interest is transferred according to the terms of this contract. The other owner(s) are obligated to purchase the deceased's business interest and the deceased's heirs are obligated to sell.

Using insurance as a funding vehicle provides the following benefits:

  • Immediate availability of proceeds when death or disability occurs.
  • The insurance proceeds used to buy the deceased's share are generally cost-effective.
  • Death benefit proceeds are generally federal income tax free.