A buy-sell agreement, funded by life insurance, provides a safety-net for the future of your business. When an owner dies, his or her share of the company will pass to the heirs of his or her estate. A buy-sell agreement guarantees the heirs a buyer for assets that they may not know how to handle, and it also allows peace of mind for the remaining owners because the deceased’s share of the business with not pass on to someone that cannot fulfill their role in the company.

Even if you’ve already established a buy-sell agreement, it’s important to reevaluate this agreement periodically to ensure that it remains up to date with your business’s current valuations, partnerships, and insurance policies.