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Buy/Sell Protection

As a business owner, your business interest passes to your heirs when you die. Although your heirs inherit the business, they may not work in the business and may have no desire to do so. What happens to your business if you die?

A properly funded buy/sell agreement using life insurance may ensure that the family receives a fair price for the deceased's stock and that the surviving stockholders will be able to continue the business. Business life insurance on each owner may ensure that there is cash to pay for the deceased's share of the business.

What are the alternatives for your heirs and any other surviving owners?

For the Heirs

Enter Business with Survivors
  • What salary should heirs receive?
  • Is this desirable?
Buy Out Business
  • What salary should heirs receive?
  • What is the price?
Sell Stock to Outsiders
  • Is there a market for the stock?
Sell Stock to Survivors
  • How do you assure a fair value?

For the Surviving Owners

Accept Heirs into the Business
  • Do they have experience?
  • Are they active in the business?
  • What salary should they receive?
Sell to Heirs
  • Is it practical?
  • What is the price?
  • Where do they get the money?
Accept an Outsider who Buys Heirs’ Stock
  • Do they have experience?
  • How active will he/she want to be?
Buy Out Heirs
  • What is the price?
  • Where do you get the cash?
  • Will they sell?

Let a Sentry representative help you protect your business with buy/sell protection funded with life insurance. Click here to Find an Agent.