Death In A Partnership Can Be The Death Of A Partnership

Howdy Partner ! Now lets imagine for a minute that you and I actually was partners. Partners in business. Now, one problem, of course, is that if one of us died, why, wed end up being in business with the deceased partners kinfolk. If I died first, youd end up in business with my son Jethro. And Jethro, well, hes a dope. One solution, then, might be a buy / sell agreement funded by life insurance. This is where the company takes out a joint first-to-die life insurance policy on both of our lives. Then, if one of us died, the death benefit would be paid into the companys capital dividend account, and from there it would be used to buy the shares of the heirs. If I died first, youd end up with the entire companyand no Jethro. So if youre really in business, and you really have a partner, perhaps you should be considering who you are really going to be in business with if your real partner dies. Do you want to be in business with your partners spouse or children? If not, how will you buy them out? Life insurance is the best tool there is for dealing with the financial problems created by a death. While it could take you years to accumulate enough free capital to buy out a deceased partners heirs, a life insurance policy would cover that problem off as soon as the coverage is approved. For more information about the uses of life insurance, visit http://www.chericrause.com/insurance.htm