- March 27, 2023
- Posted by: Walshe Clancy O'Neill Financial Group
- Categories: Financial Planning, Insurance
Business Buy/Sell Insurance (usually Life and TPD) is designed to protect business owners and their equity. It acts as a funding mechanism for the remaining partner(s) to buy out the equity of a deceased or disabled partner. This cover is critical for businesses with two or more owners.
It is important to consult with an insurance professional to determine if buy/sell insurance is necessary for your specific business, to protect against the loss of a key partner or owner..
Buy/sell insurance can provide cover for various risks that are outlined in a buy/sell agreement. These risks may include:
– loss of a key partner or owner due to death or disability;
– financial hardship for the family of a deceased or incapacitated owner if the value of the business is not properly protected;
– interruption of the business operations due to the loss of a key partner;
– the cost of purchasing the deceased or incapacitated owner’s share of the business from their estate.
The coverage and scope of buy/sell insurance policies can vary, so it’s important to consult with an insurance adviser to determine what risks are covered under a specific policy.
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