Has anyone purchased buy/sell life insurance?
I'm in the very early process of trying to determine terms and coverage amount.
I want a large enough policy so that I don't have to refine the amount and be subject to a health audit as our companies continue to grow. But I want to balance that with price (e.g. I'm not willing to pay $15K/year for a $10M policy for 15 years).
I'd appreciate any insights or experience the community can share so that I can better frame my expectations and delineate between our wants vs needs.
Many thanks in advance.
The more research I did on buy/sell life insurance, I'm thinking self-insurance might make the most sense. What I mean is, for example, if my business partner passes away I'd like to buyout his equity portion in our joint business holdings. I could try to estimate what the value and time period would be and purchase term life insurance (I'm not a fan of whole life insurance). Or I could self insure with a promissory note paid to my business partner's beneficiaries via the business' cash flows.
I'm thinking the latter is a better option as my business partner and I plan to have multiple businesses and the cost of insurance would be material and the terms (i.e. policy amount and term) are highly variable at this time.
Thanks again to all of you.