Buy-Sell Agreements

How Buy Sell Agreement Life Insurance Protects your Business

Reduce conflicts & grow your business with best buy-sell life insurance policy at Houston Life Insurance Agency!

When a company runs in a partnership, there are always chances of conflicts between the partners for shares. Having a business insurance Houston like buy-sell agreement secures your business and control the distribution of shares in the event of an owner unexpected death.

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What is Buy-Sell Agreement & How It Works?

Buy-sell agreements are legal binding set between the partners, co-owners and key employees to escape from the mutual conflicts in the event an owner leaves the company. This buy-sell business insurance outlines who can own the shares, how the shares will be divided and how business authority will be reassigned when a partner dies untimely.

To be in effective, these buy-sell agreements are funded by our termlife insurancepolicy so that each owner could benefits from the death coverage.

Entity redemption plan

In entity purchase buy-sell agreements, a business purchase the life insurance policies on behalf of every core employees- co-owner, keyman, manager, wife, partner. Therefore, in the event of death of any key person, the only business could receive the death payout.

Cross-Purchase Plan

in this option, every core employee owns the life insurance for another keyman so that they could benefit from the best term life insurance coverage in the event of keyman death.

What does Buy-Sell Agreements Covers?

Buy-sell life insurance reduces the turmoil between the partners when an owner demises suddenly. Apart from this, there are certain other benefits covered by our buy-sell business insurance plans;

The unexpected death of a keyman not only leaves the company in a great financial strain but also affect the decedent family. Therefore if you are running a partnership business, it’s must to have business insurance Houston TX to protect the legacy of your business.

  • This agreement restricts owner or heir to sell the shares of a company outside the company without remaining owner’s permissions.

  • Provide financial protection to the business and the family.

  • Helps company to deal with the difficult situation (downtime) when a core employee suddenly leaves the company.

  • Buy-sell agreements provides a good lump sum that a business could use to recover the loss or in business expansion.

  • To buyout the deceased shares, death payout becomes a great financial tool.

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What are the Costs Associated With a Buy-Sell Agreement Life Insurance Policy

When two or more business owners want to sell their business, they often set up a buy-sell agreement. This type of agreement protects the business owners financially in the event that one of them dies or becomes disabled and can no longer work. A buy-sell agreement life insurance policy is one way to fund a buy sell agreement. In this article, we'll discuss the costs associated with this type of policy.

·  The cost of a buy sell agreement life insurance policy will depend on a number of factors, including the face value of the policy, the premium, and the riders. The face value is the amount of money that will be paid out to the beneficiaries in the event of the death of the insured. The premium is the amount that must be paid to keep the policy in force. Riders are optional additions to the policy that can add additional coverage or benefits.

·  There are two types of premiums that can be paid for a buy sell agreement life insurance policy: level premiums and annual renewable term premiums. Level premiums stay the same throughout the life of the policy, while annual renewable term premiums increase each year as you get older.


·  The cost of a buy sell agreement life insurance policy also depends on whether you choose a whole life or term life policy. Whole life policies are more expensive because they last for your entire lifetime and build cash value over time. Term life policies are less expensive because they only last for a set period of time (usually 10-30 years).


·  Finally, the cost of a buy sell agreement life insurance policy will also depend on whether you choose to purchase it through Houston Texas insurance companies or broker, or if you purchase it online. Online policies are usually less expensive because there is no middleman involved in the transaction.


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