Life Insurance can be an essential part of succession planning and having the liquidity alongside a buy-sell agreement completed by an attorney to keep the business running. One of the major fears for business owners is not having a plan in place or a way the owner or family of the owner can be paid fair market value for the business, preserving the value and integrity of the business.

Some of the issues that life insurance can be used to address include:

1.Used to pay estate taxes or provide liquidity, if structured correctly as an irrevocable life insurance trust
2.Provide working capital upon the death or disability of the owner
3.Provide liquidity to purchase business as part of buy-sell agreement.