So You Wanna Sell Buy/Sell or COLI

[scagnt83]

Bump~

I have done some buy/sell and key person insurance policies over the years. Most of the time, our planning centered around their business situation and had not moved beyond to their personal planning; and with their families.

I thought there may be two factors into this. One is the spouses are typically not involved. Two is the new estate tax exemption is pretty high.

Anyone has good suggestions?

Thank you!

-Ray

You explain to them how their business situation affects their personal situation. The buy/sell covers the buy out of the business. But are there any Death Benefit stipulations in the buy/sell? Is there an extension of salary clause? If so for how long and how much? It is rare to have...

In the course of the buy/sell funding you find out their income. So you ask them if that income is guaranteed to continue to their family if they pass away. If so for how long and what % is covered.

They might say the buyout funds will cover them. But will it really? Most small businesses do not have a lot of assets. The main assets are usually the owners and property if they own it. Ask them when the last time they did a needs analysis on income continuation for their family.