Financial Planning

Business Life Insurance (Buy-Sell)

A buy-sell agreement is a contract between two or more business owners that outlines the terms of ownership transfer in the event that an owner retires, becomes disabled, or dies. Corporate buy-sell agreements are typically structured in one of three ways: a stock redemption, a cross-purchase, or a “wait and see” agreement.

  • Entity Purchase Agreement: The business agrees to purchase the interest upon each owner’s death, disability or retirement.
  • Cross Purchase Agreement: The owners agree among themselves to buy or sell their individual interest upon death, disability or retirement.
  • “Wait and See” Agreement: Provides the flexibility to use either of the above methods at owners death.

A buy-sell agreement is a protection tool that can help secure the continuation of your business and the financial security of your heirs if you or a business partner dies, becomes disabled, or retires. In a cross-purchase buy-sell agreement, when an owner dies, the surviving business owners agree to purchase the business interest of that partner.


  • Each business owner purchases a life insurance policy on each of the owners.
  • Upon the death of an owner, the death benefit is paid directly to surviving owners.
  • Owners then use funds to compensate deceased owner’s estate for their interest in the business.

Get in Touch

Let's Connect

Our team is here to help. Simply fill out the form below and one of our advisors will be in touch with you shortly to discuss your needs.