LIFE 209 Buy Sell Agreements

Let’s talk about one of the most overlooked parts of business planning: The Buy-Sell Agreement-Also known as the Business Will. -Imagine you and a partner start a business. Things are going great and you’re making money, hiring employees, and making the world a better place. -What happens if one of you passes away or becomes disabled and can’t work. What happens to the ownership? -Without a plan in place, the surviving partner could be stuck in business with their partner’s spouse, children, or even their estate attorney. That can get messy fast. -This is where life insurance steps in. A Buy-Sell Agreement funded with life insurance allows the surviving partner to purchase the deceased partner’s share of the business—quickly and cleanly. -As an option you can also purchase a Long-Term Disability policy to protect the business from having to continue paying the partner that is unable to do his job duties. -Death and Disability are considered “triggers” that activate the agreement. -It protects everyone. The family gets what the business was worth without needing to run it. The partner gets to keep things moving without legal entanglements. -A Buy-Sell agreement is a business love letter. It says, “I care enough about this company, and about you to plan ahead.” At Springer Insurance, we help business owners write those letters before life forces the conversation.