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Key Man Insurance and Buy/Sell Policies
There are many business uses for life insurance.  We specialize in helping business owners protect their firms and reward their employees through the use of insurance products.  Our team works with large corporations and small firms to achieve their risk management needs.

Key Man Policies – Do you have a key employee working on your team?  If this employee passed away, would their death impact your business?  Because many employees possess key relationships or have special knowledge they are critical to your firm’s success.  By obtaining life insurance coverage on the key employee, the company can obtain a monetary payment in the event of the death of the key person.  The funds from this payment can be used to find a replacement or simply ensure the viability of the business while another solution is found.

Buy-Out Policies – Many small businesses and partnerships need buy out policies to ensure that an organization can continue despite the death of an owner.  For example, imagine two partners build a successful oil and gas company worth $3 million over the last 20 years.  Unfortunately, partner A dies and leaves his portion of the firm to his heirs.  This terrible situation suddenly leaves partner B as the sole person working in the firm.  He would like to buy out the heirs, but does not have $1.5 million to purchase the other half of the firm.  The situation is worse because the heirs want to sell the company and now begin to look to outside parties to sell their interest.

This situation could have been avoided easily with the use of a Buy/Sell Agreement drafted by an attorney and life insurance to fund the purchase.  The Buy/Sell Agreement establishes rules for the transfer of the company in the event of a death or disability and the life insurance policy provides the cash to meet the obligations to buy out the heirs.  Using this agreement ensures that the partner retains the entire company and the heirs receive appropriate funds immediately.


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