Buy-Sell Funding

An agreement needs
a way to be funded.

Life insurance may provide liquidity for a purchase after an owner’s death when policy ownership, beneficiaries, and coverage align with the legal agreement.

Schedule a Conversation

Professionals discussing plans around a meeting table

Your goals. Your needs. Our focus.

ALIGN THE POLICY WITH THE PURPOSE

Begin with the agreement.

Review the purchase obligation, valuation method, parties, and triggering events before choosing insurance. The amount of coverage should be connected to the actual funding need, not selected in isolation.

Life insurance addresses a covered death, subject to policy terms. Other funding sources may be necessary for disability, retirement, departure, or a purchase price exceeding available proceeds.

Term insurance

May address a defined coverage period or an obligation expected to change. Review duration, renewability, and conversion provisions.

Permanent insurance

May be evaluated for a continuing obligation. Review premiums, cash values, costs, and the conditions required to keep coverage in force.

Combinations / layering

Different coverage periods or types may be coordinated with the funding need. Complexity and ongoing administration still matter.

Check the details that direct the money.

Buy-sell funding review
Item	Question to resolve
Policy ownership	Who owns the policy, and does that match the agreement structure?
Beneficiary	Who receives the proceeds and is responsible for the purchase?
Premium responsibility	Who pays, and how is payment monitored?
Valuation	Does the current valuation method reflect the business and applicable rules?
Funding amount	How does coverage compare with the expected purchase obligation?
Review schedule	What happens when value, ownership, health, or the agreement changes?

Coordinate legal, tax, and insurance decisions.

Policy ownership and business valuation can have significant tax consequences. Transfers of existing policies and entity-owned life insurance require particular attention. Do not assume proceeds are tax-free in every arrangement or that funding eliminates valuation issues.

Qualified legal and tax professionals should review the structure. We can coordinate the insurance discussion with those professionals and help revisit the coverage as the business changes.

Insurance products are subject to underwriting where applicable. Product features, costs, availability, and state approval vary by carrier and policy. Guarantees depend on the issuing insurer’s claims-paying ability and contract terms. This material is educational and is not individualized investment, tax, or legal advice.

YOUR GOALS. YOUR NEEDS. OUR FOCUS.

Discuss your business continuity plan.

Tell us what matters to you. We’ll begin with your goals, your needs, and the questions on your mind.