If you have one or more business partners, you likely have a written agreement that outlines a variety of issues, including what should be done in the event of the death, disability or retirement of one of the partners or shareholders. The agreement is meant to simplify the eventual buy-out by establishing valuation methods, terms of sale and other important components into place. There must be funding in place that ensures the terms set out in the agreement are met, when the surviving partners or shareholders are called on to purchase the business interest.

There are a number of options that you have to create this funding, such as saving, borrowing or selling assets. Another possibility you should consider is a life insurance policy, which can serve to be the most inexpensive, yet most valuable method of financing available. Unique to this funding model, as opposed to the others, is its guaranteed effectiveness in providing the necessary cash required at the time it is needed most.

All insurance products are sold through ScotiaMcLeod Financial Services Inc., the insurance subsidiary of Scotia Capital Inc., a member of the Scotiabank Group. When discussing life insurance products, ScotiaMcLeod advisors are acting as Life Underwriters (Financial Security Advisors in Quebec) representing ScotiaMcLeod Financial Services Inc.

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