Many successful businesses recognize the importance of their key employees and use executive benefit plans to provide added supplemental benefits. In most cases, a cash value life insurance policy is an ideal vehicle for funding these executive compensation arrangements.

Buy-Sell agreements are key to your exit strategy. It creates a market for the business when an owner dies, becomes disabled or leaves. When structured correctly and funded with life and disability insurance a buy-sell agreement can help provide a solid start to your exit plan.

Under a cross-purchase buy-sell agreement, each business owner individually agrees to buy a part of a deceased owner’s interest.

Whether the owner is a sole proprietor or just one of many in their business, disability Buy-Out (DBO) insurance helps fund the purchase of a totally disabled business owner’s interest under a buy-sell agreement.