BUY - SELL AGREEMENTS
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Buy-sell agreements, often utilized in business continuity planning, are contractual arrangements that involve life insurance to facilitate the smooth transition of a business in the event of a key person's death or departure. In the context of insurance, these agreements typically employ life insurance policies on the key individuals within the business.
THE IMPORTANCE OF BUSINESS CONTINUITY PLANNING
Buy-Sell agreements, essentially contractual arrangements among business owners or partners, establish clear protocols and procedures for the eventuality of a triggering event. The departure or loss of a key person can have profound implications for a business, impacting its operational dynamics and overall stability. Buy-sell agreements, by providing a structured framework, act as a safeguard, enabling the business to navigate such challenges with foresight and financial prudence.