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A buy sell agreement specifies what will happen to the interests of a key person who passes away or becomes disabled. Most will use the life or disability insurance to fund the buy sell agreement if the owners or partners must purchase said deceased/disabled key person's interest. On the other hand, the business can also purchase the insurance on each key person and use the proceeds to purchase/redeem the deceased/disabled owner's interest in the business.

A buy/sell agreement and insurance is crucial to ensuring the continuity of your business while protecting the financial interests of each co-owner's family.

There are two types of agreements:
  • Buy/sell life insurance
  • Buy/sell disability insurance
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