A form of buy-sell agreement and insurance whereby each partner of a business purchases insurance on the lives of the other partners. This provides protection to the value of the business and can be in the form of life and/or disability coverage.
a contract among the owners of the business to buy the interests held by the other owner(s) during their lives or upon their death
a contract between you and the other co-owners whereby you as a group agree to buy out an exiting co-owner's ownership interest when and if a triggering event (such as death or disability) occurs
In a disability buy-sell situation, this arrangement has the owners themselves as owner and beneficiary of the policy proceeds. Generally used only where two owners are involved.
A type of buy-sell agreement in which the coowners of a business agree among themselves to purchase the interest of a deceased or withdrawing owner. May be contrasted with an "entity purchase" agreement and a "stock redemption" agreement.
A business buy-sell agreement in which the surviving co-owners will be the purchasers of the business interest of a deceased owner.