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Using Life Insurance to Fund Buy-Sell Agreements

Even if you have personal life insurance with your spouse or family member as the beneficiary, you can still use a separate life insurance policy through your company or co-owner(s) to fund a buy-sell agreement.
There are many benefits of a buy-sell agreement, including the following:

  • Establishing a valuation of a deceased owner’s interest in the business for estate tax purposes
  • Establishing a mutually agreeable price and terms, to reduce potential litigation and friction in the future
  • Helping facilitate the smooth transition of management
  • Making sure the family of the deceased owner receives cash instead of unmarketable stock

Learn more about the protection and peace of mind that a buy-sell agreement can provide for you and your company. The Hull Group can help.


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