Buy/sell is a valuable insurance product that is designed for your small business partnership where the death of one partner causes an unforeseen effect on the rest of the company and the surviving owners. To keep that from happening, you can buy a buy/sell life insurance policy that covers both co-owners and protects your business.
Most small business customers create a buy/sell agreement to accompany their policy. That buy/sell agreement arranges that should one partner die, the other is required to buy out the deceased partner’s share of the business. The death benefit of the insurance policy is what gives the surviving partner the money to do that.
The most common type of buy/sell policy used today is a term life product. The amount of coverage you need is the exact amount it would take to buy out your partner’s share of the business.
Talk to Charles Garland & Harris today about your business operations and we can advise you how to go through the buy/sell process you to protect you, your partners and your company. Just give us a call at 575-437-6910 and we’ll help make sure you’re covered.