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Partnership Funding Insurance
Protecting your business is an essential part of preserving your estate. When an active shareholder in a business can no longer participate in the business, it's important that the other shareholders have a plan in place to continue the business. PARTNERSHIP FUNDING INSURANCE ensures that money is available to buy a deceased or disabled partner's share of the business, funding the Buy Sell Agreement.
»The Challenge
Business partners want to ensure that if one partner dies or has an accident or sickness, the other partners will be able to purchase the deceased partner's shares from the heirs and continue the business without interruption.
»The Solution
PARTNERSHIP FUNDING INSURANCE involves a joint first-to-die life insurance policy, living benefit protection and a completed Buy-Sell agreement. A Buy-Sell agreement is like a "business will" and is a written legal document. Along with your advisor, a lawyer and accountant also need to be part of the team when setting up the agreement.
People often delay purchasing the insurance, thinking that they can buy it later. Most insurance is medically and financially underwritten, which means that your eligibility to purchase insurance is based on your current health, medical history and ability to pay. Today’s insurance world is much different than years gone by and qualifying for coverage, especially living benefit protection, is a very stringent process. Rule of thumb is getting it while you can. Involve your accountant, lawyer and financial advisor having them work as a team for your business.
For more information and or advice please contact Wise Financial Group Inc. toll free at 1-877-779-4731 or email info@companybenefits.ca.