Nobody knows what the future holds. As a business owner, your business would survive if something happened to you or a business partner?
Many companies are the shared dream of two close friends and business partners. This means that the company could be vulnerable if one of the owners dies unexpectedly. In this tragic situation, a repurchase agreement funded by life insurance could save your business.
What?
A repurchase agreement is a contract that facilitates a seamless transfer of property when an owner dies. The agreement defines who will buy the commercial interests of the deceased and who has to sell. The agreement also establishes the selling price and purchase. It is mostly funded by the life insurance
Financing your purchase and sale agreement with life insurance is ideal for :.
- The company's protection from the financial impact of the death of an owner.
- provide funds to purchase the interest of the deceased owner in the company.
A buy-sell agreement can also provide peace of mind for the heirs, who may not be in the position to inherit an asset, they lack expertise or interest in the race. Life insurance can reduce the likelihood that the business or business assets will be sold, often below the market value, in order to generate cash to complete the transfer of the business.
For more information on a repurchase agreement funded by life insurance, it is best to speak with an insurance professional as Erie Insurance Agent * in your community.
* Erie Family Life Insurance products are not available in New York. Neither Erie Family Life nor his agent representatives give legal or tax advice. Please consult your attorney or tax advisor for answers to questions related to taxation.
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