Buy-Sell Agreement Insurance

Provide Stability to Your Business During a Time of Change

What would happen to your company if your business partner suddenly passed away? Would it be able to continue? Would it be unable to function effectively for months, damaging your business in the process?

A buy-sell agreement helps ease these concerns, and smoothes the ownership transitional process. It’s a contract between the owners of a business that establishes the company’s value, as well as the cost to purchase the deceased owner’s share of the business.

Having this agreement makes it much simpler to transfer the deceased’s interest in the business, and avoids lengthy probate proceedings. And, by using life insurance to fund the agreement, you’ll have immediate access to the cash you’ll need to facilitate this transaction. In most cases, you’ll receive these proceeds tax-free.

It’s difficult enough to deal with the loss of a valued business partner. By taking precaution now, you can save yourself some of the financial stress of this situation – and keep your company operating as normally as possible during this time of change.

Example: Jim, your college roommate, founded a business with you 12 years ago. Since then, the company has grown rapidly, and it’s now valued at $2.5 million. To protect the business, both of you take out a Buy-Sell Agreement, and fund it with life insurance. You decide that each owns 50% of the business, and put this into the agreement. If Jim should pass away, the life insurance policy would give you the $1.25 million you need to buy his share of the business and become the sole owner – all while avoiding probate or having to scramble to put the financing together.

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Noori Insurance Agency, Inc.
DBA: Emerging Insurance Brokerage Services


37371 Fremont Blvd Ste B.
Fremont CA 94536

tel 510-796-4929
fax 510-796-4928