Category Archives: Business Protection
Anyone that has a business understands how important it is to be able to have a secure financial foundation. Numerous businesses have gone belly up all because they didn’t have the proper funding. Those individuals that are interested in making sure that their businesses have a financial future should consider life insurance for the business owner. This particular type of life insurance can be used for a variety of purposes. One of the main reasons people obtain life insurance for the business owner is to make sure that the person who owns the business has some sort of financial backing. Since things with businesses fluctuate so frequently, this type of insurance policy helps to protect a business owner in a variety of ways.
Protecting your business for the future
Why do we need a buy-sell agreement?
A buy-sell agreement sets out the terms under which the interest of the disabled or deceased shareholder will be sold. It also contains provisions for the transfer of ownership when you retire. As well, if properly funded, the shareholder’s family will receive fair market value for the shares, providing them with capital to help maintain their standard of living.
A properly funded buy-sell agreement can:
- Assure creditors that funds will be available to pay bills.
- Assure existing employees that the company will have the means to continue
- Ensure a market for each shareholder’s interest in the business
- Set the terms under which you and your fellow shareholders agree to buy and sell each others’ interest in the business
- Ensures surviving shareholders have the necessary funds required to buy out the deceased shareholders interest
- Provide for your family in time of need.