Buy/Sell Insurance

What is Buy Sell Insurance

A Buy Sell arrangement is a contract that allows transfer of a business to remaining owners if one owner dies or suffers a serious illness or injury and is unable to remain within the business. Insurance policies can be put in place to the fund this transfer.

Why  Buy Sell Insurance is Important

Buy Sell insurance assists with facilitating a Buy Sell Agreement to ensure a smooth transition of business ownership to the remaining owners in the event that one business owner dies or is unable to work due to illness or disablement. By using an insurance policy to fund the transfer it helps to ensure remaining owners retain control of the business and the departing owner/their family receives fair value for the sale of his or her share of the business. The insurance policy should avoid the remaining owners from having to take out loans to pay the departing business partner.

It is important that you discuss your needs with an adviser as the needs for each business are different