Buy Sell Agreement and Insurance
Any business with two or more owners should have a buy sell agreement in place.
With the legal agreement in force, the next step is to fund it. The most common way to fund such an agreement is with life insurance.
Life insurance is typically a straightforward funding mechanism for buy sell agreements. But, what if purchasing traditional insurance isn’t in the cards?
There are a few situations where other products may be an option…
What if a traditional life insurance solution isn’t feasible? There are a number of situations where purchasing traditional life insurance to fund a buy sell agreement doesn’t work or even make sense. For these circumstances, there are several solutions available to the business owners. The first step is to identify the challenge:
Health issues/high-risk avocation/high-risk job
Traditional carriers may decline people in these situations. We can provide solutions for all of these issues.
Need the buy sell in force immediately
Perhaps a loan is ready to fund but you need a life insurance plan in force. You have applied for a traditional plan which can take one to two months and need something in the interim. We can help with our short-term life insurance plan, built specifically for these situations.
Maybe one partner is dragging their feet to get a plan in force
This occurs more than one might think. If you have a formal agreement in place, a business owner can take out a confidential life plan on the partner until he or she finally follows through on getting their traditional life insurance coverage.
What about Disability?
If one of the partners is unable to work due to an injury or illness, what impact will that have on the business agreement? Consider adding disability plans in addition to life insurance. A disability buy sell or disability buy-out plan will protect all owners in the event that one of them cannot perform the duties of their job due to sickness or injury.
At www.highincomeprotection.com, we have solutions for almost any situation.
Contact us today for a confidential discussion about your needs. Our toll-free number is 888-636-2310.