As a business owner, you spend many hours working and developing your business. But have you thought about what would happen to your business should you or your partner become disabled or die?

To preserve the future of your business, it is important that you create a business continuation plan. Such plans often include a "buy-sell" agreement. A buy-sell agreement, funded by life insurance and written while the owners are alive, ensures that your heirs can sell their share of the business to surviving owners and that the surviving owners can buy their shares. Each owner also agrees not to sell their interests without first offering it to the remaining owners at an agreed-upon price or formula. Consider the following options:

Partnership Life Insurance: Farmers Partnership Life Insurance is designed to help your business survive the loss of a partner. To preserve the business, many partnerships have a buy-sell agreement that fixes both the prices and terms of the sale in the event a surviving partner buys out a deceased partner's interest.  Life insurance can provide the necessary funds no matter when the partner's death occurs.

Sole Proprietorship Life Insurance: You may want to transfer your business to a successor, in which case life insurance purchased by your heirs can provide funds to pay estate taxes and help sustain the business during the initial phase of new management.

To find out what Farmers can do for your business life insurance needs, phone our office or send us an e-mail and an agent will get right back to you.