Executive Planning Group, P.A. will work with businesses to establish buy-sell agreements and to set up key employee insurance. Both of these can be critical to assuring the business survives after the death of an owner or key employee.
A properly executed buy-sell agreement facilitates an orderly transition of the business upon the death of one of the owners. It also assures the heirs of the deceased owner that they will get a fair price for the deceased owner’s share of the business.
There is more than one kind of buy-sell agreement. With an entity purchase buy-sell plan, the business entity buys the insurance on the life of each principal. The insurance proceeds provides the cash the business entity will need to purchase the deceased principal’s interest in the business.
With a cross-purchase buy-sell plan, the principals in the business buy life insurance on each other to provide the cash each will need to purchase a share of the deceased’s interest in the business.
Businesses can buy life insurance on the life of key employees. This ensures that the business can continue on sound financial footing if a key employee should die.
Call us today at (601) 982-3000 or email us to request a quote on our business insurance products!