Buy Sell Insurance For Business Partners
Protect every partners ownership in the company and its survival if a partner suddenly passed away.
How will you afford to buy out your partners shares if they passed away?
Buy sell insurance is the most cost-effect way to solve this issue and will help your company survive if a partner suddenly passed away.
How does it work?
- The amount of life insurance each partner has is based on their ownership in the company.
- Your company pays for the premiums.
- The life insurance is paid tax-free to your corporation if a partner passes away.
- The surviving partners use the life insurance proceeds to buy out the deceased partners’ shares.
- Your company receives a credit to its capital dividend account, allowing for tax-free dividends to be paid out of your company.
- You can pay monthly, annually or with an IFA.
- Depending on your age and health, you may be able to get instant approval without providing medicals.
How much does buy sell insurance cost?
Several factors determine the price of buy sell insurance, including:
- Amount of insurance needed
How much buy sell insurance do you need?
Buy-sell insurance is based off each partners ownership in the company.
Key Person Insurance
What would happen to your company if you or a key employee suddenly passed away? How much would the value drop? Do you have employees and their families relying on your business remaining open?