Buy and Sell Agreement Insurance

Buy and Sell Agreement Insurance

Buy and Sell Agreements are essentially agreements made between the partners or the shareholders of a business defining the consequences of a death or an illness of one of the partners. In case if buy and sell agreements do not exist, then in the event of death, the shares would roll over to the deceased or critically ill partner’s family. The important point to note is that the shareholders had initially come together to do the business together and each one, probably, brought his or her expertise.

Here is a question: Is the deceased partner’s family capable to co-manage the business, would the other shareholder like to do business with the family of the deceased partner? Therefore, there is life insurance that is taken out on the lives of the shareholders. Upon the death of one of the shareholders, the life insurance will pay out a benefit equal to the value of the share. That amount is paid to the family of the deceased shareholder and in return the shares are relinquished. There could be several types of insurance policies that could be purchased.


We at are experts in explaining the the various types of life insurance that could protect the business and the interest of the shareholders. Please feel free to contact us at or at 1 416 509 2540. Please visit us for a no obligation quote or advice.


Term Life Insurance

is an extremely cost effective way to insurance yourself when your temporary ( or time bound) needs for insurance are high. During the years when we are raising our kids, have big loans to pay and also building our assets, term insurance could be a great fit.The cost of insurance ( or the premiums) are constant for the duration of the term. Policies are renewable and convertible.


Permanent Life Insurance

is essentially a coverage that is lifelong. It runs through our life assuring a payout upon death. The cost of insurance can be level or YRT and the payout is tax free. Its main purpose is :


Universal Life Insurance one of the best things that could happen in the world of Life Insurance. UL policy is when a permanent life insurance is merged with the possibility to have several investment options.

Your policy provides a lifelong coverage and at the same time you can save money within the policy to create tax-sheltered savings…

UL Policy ….an excellent way to build wealth that could actually become tax-free for your family. There are several options that could be customised for an individual.


Combining your term and permanent insurance: both are important.

People often wonder what is better, Term or Permanent Insurance. Both have their advantages and disadvantages. However, both have a significant role in our world of protecting our family, assets, incomes, family etc etc. Therefore, it could be a good idea to take a combination of Term and Permanent Insurance. It can be bought together in one policy , thus there could be some savings on policy fees and in premiums. It is a Think Smart approach to buying Life Insurance. ( Read More and watch a video)


Prepared by:  Aman Kapur

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