Business owners should consider both life insurance and a buy-sell agreement to protect themselves, their families, and their businesses in case of unexpected events.

Life insurance provides financial support to the family of a business owner in case of his or her unexpected death. Without life insurance, the business owner’s family may be left with the responsibility of managing the business and its associated debts, which can be overwhelming and can lead to the closure of the business.

A buy-sell agreement is a legal contract that outlines how the ownership of a business will be transferred in case of a trigger event, such as the death or disability of a business owner. This agreement can help ensure that the business continues to operate smoothly and that the remaining owners can purchase the deceased owner’s share of the business at a predetermined price. This can prevent disputes and ensure that the business remains stable after the loss of a key owner.

Combining life insurance and a buy-sell agreement can provide comprehensive protection for both the business owner and the business. Life insurance can provide financial support to the family of the business owner in case of his or her unexpected death, while a buy-sell agreement can ensure that the business continues to operate smoothly and that the remaining owners can purchase the deceased owner’s share of the business.