If you have a business partner, buy/sell protection is important to have to avoid financial difficulties should your business partner die. This insurance can help you avoid the need to liquidate company assets or borrow money to buy out your partner’s interests. It can also help protect your heirs who inherit your business interests when you die. An agent at The Russell D. Patten Insurance Agency, LLC in Hermon, Maine, can help you obtain the buy/sell protection you need.
What Happens to Your Business When a Partner Dies?
With the death of a business partner, the deceased partner’s heirs inherit his or her interest in the business. Business life insurance purchased for each partner can help ensure that the business has the funds to purchase the deceased partner’s share of the business from the heirs.
When you die, your heirs will inherit your business interests, but what if they have no desire to work in the business or have no knowledge or experience? A buy/sell agreement, properly funded with life insurance, can help ensure that the surviving partners can continue the business, and your heirs get a fair price for the business interests inherited from you.
Cost of Buy/Sell Protection
Life insurance on the partners in a business can provide buy/sell protection for the business. Business life insurance costs depend on the type of policy and the amount of coverage needed, in addition to other factors, including age, general health, exams, smoking status, gender, and occupation of the partner for whom the policy is issued. Our agent at The Russell D. Patten Insurance Agency, LLC in Hermon, Maine, can help you find buy/sell life insurance protection for your business that with match the needs of your enterprise in premium cost and benefits paid.