Buy – Sell

Buy-sell insurance is meant for closely-held businesses, including sole proprietorships, partnerships, S-Corporations, and C-Corporations. Buy–sell insurance helps ensure that a business continues with the remaining owners or family members.

In its most basic terms, a buy–sell arrangement is a binding agreement in which one party agrees to buy and another party agrees to sell a business, usually at a pre-determined price, upon death, disability, or retirement.

Buy-sell agreements are funded with life insurance. Life insurance pays a death benefit income tax free and also minimizes current costs by allowing the purchaser(s) to pay for only a fraction of the future benefit. Buy–Sell agreements can take several forms, including Entity–Purchase, in which the business agrees to redeem the interest of a business owner, and Cross-Purchase, in which partners or owners agree to buy out the interest of the other partners or owners.

At EPIC, we have access to a wide array of insurers and 20 years of experience in business succession planning. Contact us for more information about funding a buy-sell agreement for your business.