Buy/Sell Agreements

Did you know there are over five million small businesses in the United States? While 3% of small-business owners have discussed with their partners who would run their business in their absence, only 14% have life insurance as part of their business-continuation plans.*


Funding With Life Insurance

A buy-sell agreement protects the remaining owners by preventing a disruptive or unqualified individual from acquiring an interest in the business. These agreements are typically funded with life insurance, which reduces the financial strain on the remaining owners.** This ensures that your business partners won’t have to come up with the money to buy out your share of the business and that your surviving family members will be fairly and promptly compensated for their share.


Consider Disability Buy-Out Insurance

Business owners should also consider disability buy-out insurance as part of their buy-sell agreement to insure against the risk of a partner becoming disabled and unable to work. The disability buy-out insurance would fund the buy-sell agreement, allowing the disabled owner to be bought out, typically after a one-year waiting period.


Advice Focused On You

Our Financial Advisors can help you figure out what type of insurance is right for you and your business. Call us at (800)392-3009 to schedule an appointment.

Related Information

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*Source: LIMRA's "Small Business Owners 2009.

** People’s Securities is not a legal or tax advisor and business owners should consult with their tax and legal advisors regarding tax implications of any buy-sell agreement they are establishing.

Investment and Insurance Products:

  • Not Insured by FDIC or any Federal Government Agency
  • Not a Deposit of or Guaranteed by a Bank or any Bank Affiliate
  • May Lose Value

Investment and insurance products are offered through People’s Securities, Inc., a Broker/Dealer, member of FINRA and SIPC, an insurance agency and a registered investment advisor. People’s Securities, Inc. is a subsidiary of People’s United Bank, N.A. Investment products may involve risk, including possible loss of principal.

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