The Importance of Buy-Sell Agreements

Advantages of Using Life Insurance

Life insurance creates a lump sum of cash to fund the buy-sell agreement at death

Life insurance proceeds are usually paid quickly after your death, ensuring that the buy-sell transaction can be settled quickly

Life insurance proceeds are generally income tax free; a C corporation may be subject to the alternative minimum tax (AMT)

If sufficient cash values have built up within the policies, the funds can be accessed to purchase your business interest following your retirement or disability