How to Fund a Buy-Sell Agreement With Life Insurance
A buy-sell agreement without funding leaves surviving partners and a deceased founder’s family negotiating under stress.
Life insurance is the usual way to put cash on the table when ownership must change hands.
Key takeaways
- 01
Confirm the agreement’s valuation method, trigger events, and transfer rules are current before you size policies.
- 02
Match policy owner, beneficiary, and face amount to how the agreement says the purchase should be paid. Your attorney and CPA should sign off.
- 03
Revisit coverage when ownership percentages, company value, or partner roles change.
- 04
Stead Life helps place and structure the insurance. We do not draft buy-sell agreements.
In this guide
- Confirm the agreement’s valuation method
- Match policy owner
- Revisit coverage when ownership percentages
- Stead Life helps place and structure the insurance
Recommended next step
Buy-Sell InsuranceSee how Stead Life builds this into a lifelong insurance relationship.Continue learning