buy/sell Insurance
Our specialty team will work with you to get a buy/sell agreement in place to protect the future of your business!
This contract funded by a life insurance policy can help minimize the turmoil caused by the unexpected. Should a sudden departure, disability or death of a business owner or partner occur, Buy/Sell Insurance is there to support the business. Seek expert advice to ensure the best fit. Contact us for guidance on if a Buy/Sell Agreement is the right fit for you.
types of plans
Many business owners choose one of two buy/sell agreement life insurance plans. They include:
A cross purchase plan – A cross purchase agreement depends on each business owner buying a life insurance policy on each of the other owners. Then, when an owner dies, the remaining owners use the payout from the life insurance policy to buy the deceased owner’s share of the business.
An entity purchase, or stock redemption, plan – Each employee-owner enters into an agreement with the business to sell their interest in the business. As part of the agreement, the business buys life insurance policies on the lives of each owner. The business pays the premiums and therefore exists as the owner and beneficiary of the policy. When an employee-owner dies, that share of the company passes to the heirs of his or her estate. Then the business can use the policy’s death benefit to buy the interest from the estate.
why get a buy/sell agreement?
Business Benefits:
Ensures capable hands manage the business in the absence of the owner.
Facilitates a fair market value exchange, providing financial security.
Promotes orderly transfer of wealth, ownership, and management.
May offer tax benefits.
Guarantees heirs a suitable buyer for assets.
Provides cash to settle estate debt, expenses, and taxes.
Partner & employee benefits:
Enables employees to purchase a business they are invested in.
Assures remaining owners that the deceased owner's share won't go to an unsuitable party.
Ensures continuity for customers, creditors, and employees.
It’s time to meet Madison!
Madison Ford leads our life insurance department. He’d be happy to help! You can call him directly at (231) 492-0824 or email him at mford@fordinsurance.net.
CALL: (231) 492-0824
EMAIL: mford@fordinsurance.net
Or if you’d prefer, click below to fill out a form and he will get back to you.