How Do You Fund A Buy-Sell Agreement?
Business partners need to protect each other against premature death and disabling accidents or illness. Consider whether the partial or total disability of a business partner would adversely effect the continuation of the business. Calculate the approximate dollar value of that loss. Consider whether the untimely death of a partner would adversely effect the continuation of the business. Calculate the approximate dollar value of that loss. Factor in the consequences of having the spouse or family members of a partner becoming dependent on the business in the event of either of those possibilities. Seek the counsel of an experienced business attorney to create a “buy-sell” agreement between the partners including “disability buy-out” arrangements in the document. Find a competent insurance agent that specializes in business life and disability coverage. Apply for insurance policies to fund the buy-sell agreement so that in the event of death or disability, the benefits of those policie
