Buy Sell Funding Plans

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Are You Risking Your Business?

Businesses are bold, innovative, dynamic, and forward moving. They reflect the entrepreneurial spirit of their founders. They reflect the value found in taking calculated risks in exchange for achieving dreams and fulfillment. Would it surprise you to know that you may be your company's single greatest risk? If you haven't established or updated your buy-sell agreement, you are taking a risk with the value of your business every day.

The risk comes into play in the event you, as the business owner and primary driver, suffer a disabling injury, illness, or premature death. In the absence of a well-drafted and insured buy-sell agreement, your business may have to be sold at a fraction of its value at a time when you or your heirs need its fair market value the most.

Your heirs

Image of four business executives holding puzzle pieces that connect together

Your co-owners

Your employees

What Does a Buy-Sell Agreement Do?

An insured and properly funded buy-sell agreement accomplishes these things for you, your heirs, and your colleagues:

Sets the value of your business interest for federal estate tax purposes;
Secures a guaranteed market (purchasers) for your business interest;

Assures your heirs of receiving the fair market value of your business interest;
Ensures a smooth transition of your business interest to the purchasers;
Grants continuity to your business operation for creditors and employees alike.

The executed buy-sell agreement establishes the how, how much, and when a business ownership interest transfers. It legally binds the parties to the execution of the agreement provisions. Life insurance and disability insurance provide the necessary funds to fulfill the agreement promptly, efficiently, and on a tax-preferable basis.

If you have not reviewed or updated your buy-sell agreement and the policies that fund your agreement, it's time. Markets have changed, business values have changed, and insurance company rates have changed.

Image of a calculator, reading glasses, writing pen, and a contract to be signed

Best of all, it's affordable...

Monthly Premiums for $1,000,000
20 Year Level Premium Term Insurance
Preferred, Non-Tobacco

Ages

Male

Female

Age 35

$37.99

$32.57

Age 40

$53.83

$45.49

Age 45

$96.79

$73.44

Age 50

$148.78

$107.22

Age 55

$240.68

$173.95

Top Mistakes We See in Buy-Sell...

Don't be caught with these common errors:

Failure to execute a properly drafted buy-sell agreement;
Using the wrong buy-sell agreement for your business structure;
Failure to fund the buy-sell agreement with insurance;

Failure to include disability buy-out provisions and appropriate insurance funding;
Failure to keep the current business value up to date in the agreement and policy funding amounts;
Failure to modify the valuation formula when business directions change;
Failure to consider waiver of premium benefits on the insurance contracts;
Failure to name the correct owner, premium payor, and beneficiary(s) in the insurance policy contracts consistent with the language of the agreement.

Request Your Quote Today

Quote

Give us a call or click the button on your left, submit the on-line request, and we will give you a call. We will need to discuss the following key areas in order to generate an accurate quote for you:

What is the current business value?
Is this an estimate of the value or the result of a business valuation created by your accountant or financial advisor?
Do you currently have a buy-sell agreement covering premature death and disability?
When was it last updated?

For each business owner, we will need to know the following:

Name
Date of Birth
Gender
Tobacco Use
Percentage (%) of the business they own
Their relationship to any other owners of the business (family relationships).

Click to Learn

If you would like to learn more about buy-sell agreements and what they can do for you, your heirs, and your business. Feel free to give us a call. Or, just click the More button on the right. Our Connect area has an on-line learning center full of downloads, calculators, and more for explaining concepts you may find helpful.