Business Succession Planning

Business succession planning sets your business up for long-term continuation and ensures its operations are carried out the way you want. It also plans for a well-executed transition along the way. There are various options that should be considered for your plan.  

• Buy-sell agreements provide a road map for the company to continue its operations in the event of an untimely death or disability. It also provides a predetermined value or valuation method for the company, so your family receives fair value for the business that you have worked so hard to build. 
• Life and disability insurance gives your business partner(s) or key employees the cash needed to buy out your family should the unexpected occur. Cash-value life insurance can also provide a savings vehicle that can help the next generation fund a buyout of your business interests. 
• Key person life and disability insurance can help offset financial losses that follow the death or disability of a key employee. It also provides for replacement of revenue, recruiting and training a successor, and enhances the company’s credit profile, making commercial borrowing easier and less expensive.  

Contact an advisor to learn more about life insurance’s role in successful business succession planning.