Concepts" page, there can be a variety of other triggering events such as divorce, termination of employment, bankruptcy, loss of professional license, or a outside offer to purchase the business. There are a variety of ways that these issues can be arranged, but they depend on the specific circumstances. We would be happy to discuss your circumstances in a private consultation.

• "Buy/Sell Agreement - Basic Concepts"
• "Common Forms of the Buy/Sell Agreement"

A buy/sell agreement is a contract compelling the purchase or sale of ownership interest on the occurrence of specific triggering events. To be effective, a buy/sell agreement must assure that the funds are available to make the prescribed purchase at exactly the time it is needed.

The most common triggering events are death, disability and retirement. Life insurance can be used to fund purchases in the event of death. The insurance may be owned by the business entity, or the business associates that will be required to purchase the deceased owners interest under the terms of the buy/sell agreement. That decision is based on a variety of factors and covered in the "Forms of Buy/Sell Agreements" section.

The cash value of the life insurance policy can fund the down-payment for the buyout of the ownership interest should an owner decide to retire.

Long-term disability insurance can be used to purchase the ownership interest should an owner become disabled and leave the business.

As mentioned in the "Buy/Sell Agreement Basic

Selecting the correct insurance product to fund your buy/sell agreement is essential. There are a wide variety of policies available, each suited to a particular set of circumstances. An insurance professional with a background in business continuation planning can assist you in selecting the one that is right for your company.

Please feel free to phone us at (888) 575-5445 or e-mail info@wwkinc.com. We would be happy to discuss your needs and how we may be able to assist you.