buy sell agreement with key man life insurance westchester ny
  • By Allan M Block Blogging Team
  • Posted January 2, 2020

Buy-Sell Agreements and Key Man Life Insurance

We often hear about life insurance as a personal insurance policy, but what about for business owners? A business owner must consider the implications if an owner passes away unexpectedly. Is there a plan to recover from that loss? Where will the funds come from to continue operations or find a new executive with the right skills? Maybe perpetuation to a colleague or family member is preferred.

This type of planning is exactly what a buy-sell agreement addresses: think of it as a "will" for the business. This agreement spells out exactly what will happen upon the untimely death of the owner(s) and what will happen with their shares of ownership.

Key life insurance can be purchased by the company on the lives of its owners. It supports the provisions set forth in the buy-sell agreement. The business purchases these insurance policies on the owners for their share of assets of the company so that the company can continue and the families of the deceased can be provided for. Buy-sell agreements and key man life insurance can provide the procedure and needed funds to keep your company going and ease the transition after an untimely loss of key personnel without a lot of legal and financial hassles.

For more information or answers to your insurance questions, contact us at Allan Block Insurance Agency,, located in Tarrytown, NY in the heart of Westchester County, a key business district near New York City.  We write auto, home, renters, condo, co-op, personal, business, life and group insurance for clients locally and in NYC, CT, NJ, PA, MA and many other states. The Professional Agency with the Personal Touch.