A legally binding contract known as a “buy and sell insurance” specifies how a partner’s share of a company can be reassigned if the partner dies or otherwise leaves the company. In the event of a partner’s death, buy-sell agreements frequently make use of life insurance policies to pay for the potential buyout. For a small or family-owned business, buy-sell insurance can be extremely beneficial. They can address and assist in eliminating potential issues or problems before they arise if they are properly structured.
Let us look at the benefits of having buy-sell insurance: 
- A reputable buyer for your company in the event of your departure, whether planned or unplanned.
- A known purchase price that enables you and your family to confidently plan for the future.
- Liquidity in the event of death to assist with the payment of debts, estate settlement costs, and state and federal taxes.
- Business value for the estate tax, allowing you to anticipate how to pay your estate tax obligation.
- Stability, knowing who will lead your business in the future and who depends on it (your employees, customers, suppliers, creditors, etc.) will have a better sense of safety and be more likely to remain with the business.
- Enhanced credit access if the company’s future is secure, lenders like banks and other financial institutions will be more receptive to providing financing.
- Better protection for retirement. Without having to rely on the company for ongoing support, you can begin planning for retirement on your terms by knowing how much money you will receive at retirement, as well as when and from whom.
Cafaro Insurance Agency professionals know how difficult it can be to sort through the options and decipher the jargon used in the industry to find the right plan. We offer more than just insurance: We provide individualized solutions. Contact us if you reside around Yonkers, New Rochelle, White Plains, Hauppauge, NY, Smithtown, and Deer Park areas.