Protect Your Business from the Loss of a Shareholder
Key Partner Your Wealth
Buy and Sell Agreements
One of the biggest difficulties faced by a privately-held
corporation is the death of one of the shareholders.
The loss of a key shareholder can negatively affect
the ongoing viability of your business if immediate
steps are not taken to reassure creditors, employees,
suppliers and investors. This makes business succession
planning so important. One of the more cost-effective
tools used by business owners is a Buy/Sell agreement,
funded by a Universal Life policy.
Protect Your Business with
universal life insurance
How Does it
1.The owners of the business enter into a shareholder
agreement, which sets out all of the terms, conditions,
values associated with the disposition
of the shareholders’
2.They then purchase a Universal Life policy to
fund the agreement.
The policy can be set up in
various ways depending on the needs of
3.When a shareholder dies, the death benefit is
used to transfer the
deceased’s interest in the
company to the surviving shareholder(s).
4.The deceased's estate receives the proceeds of
which is distributed to the heirs
according to the terms of the will.
The death of a shareholder has a significant
impact on the remaining shareholders, the
business itself, and obviously on the family of
the deceased. By entering into a Buy/Sell
agreement, all three parties benefit.
1. The business benefits by the reassurance provided
to the creditors,
employees, investors and customers
that business will proceed as
2. The surviving shareholders retain full control
of the business with
out interruption or outside
3. The family of the deceased gets a measure of financial
liquid assets that can be invested
for future income.
Using Universal Life to fund a Buy/Sell agreement
is significantly cheaper than selling corporate
assets, borrowing the needed funds, or using surplus
To learn more about how you can
help protect your business, give us a call at
1-877-628-5762, or send us an e-mail at firstname.lastname@example.org.
We would be happy show you how using Universal Life
to fund a Buy/Sell agreement can help you