Most common Denver Buy-sell 人寿优德app questions from our clients

What are the advantages of 人寿优德app funded Buy-Sell agreements?

• • Current business owners remain in control and avoid the intrusion of new and inexperienced owners or the need to invite a spouse or other heirs Into the business.
  • 业务 continuity is assured, maintaining employee morale and the firm’s goodwill
  • 业务 owners are assured of the right to buy the deceased owner’s business interest at a predetermined price.
  • It enables the surviving owner(s) to avoid the need to obtain credit to purchase the interest.

Are all Buy-Sell agreements the same?

NO, buy-sell agreements generally fall into board categories:

• 实体计划协议
• cross-purchase plan agreements

The primary distraction between the two if the party that will be responsible for purchasing the deceased owner’s interest and pay the 优德app premium. An Entity Plan Agreement is an agreement in which the business agrees to purchase the business interest and the life 优德app policies. This is best for an organization with multiple owners.

In a Cross-Purchase Agreement, the owners commit to buy/sell their interest at the time of his/her death to the surviving owners. The owners (usually no more than 3) commit to purchasing life 优德app policies on each other.

What type of life 优德app policy is best to fund a Buy-Sell Agreement?

As with all life 优德app purchases, the decision is a balance of needs vs cost. Universal Life or Indexed Universal Life often is the most desirable form of life 优德app because of its permanent nature and it’s premium and death benefit flexibility. Premium payments can be decreased or suspended or suspended during periods when cash flow is low. Whole 人寿优德app is also recommended as it provides guaranteed cash values, unlike all other policies. If cash is an issue, then 定期人寿优德app may be the best answer.