Business Life Insurance
As a business owner, you spend many hours working and developing
your business. But have you thought about what would happen to your business
should you or your partner become disabled or die? To preserve the future of
your business, it is important that your create a business continuation plan.
Such plans often include a "buy-sell" agreement. A buy-sell agreement, funded
by life insurance and written while the owners are alive, ensures that your
heirs can sell their share of the business to surviving owners - and that the
surviving owners can buy their share. Each owner also agrees not to sell their
interests without first offering it to the remaining owners at an agreed-upon
price or formula.
Consider the following options for your business:
Partnership Life Insurance:
Farmers Partnership Life Insurance is designed to help
your business survive the loss of a partner. To preserve the business, many
partnerships have a buy-sell agreement, which fixes both the price and terms
of the sale in the event a surviving partner buys out a deceased partner's interest.
Life insurance can provide the necessary funds no matter when the partner's
death occurs.
Sole Proprietorship Life Insurance:
You may want to transfer your business to a successor, in which case life insurance purchased by your heirs can provide funds to pay estate taxes and help sustain the business during the initial period of new management. Or, if your employees are interested in carrying on your business, a buy-sell agreement can be funded with life insurance to assure that yoError 500: com.farmers.farmcomm.navigation.DynamicNavigation (initialization failure)
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