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Protect Your Business, Your Partners, and Your Legacy

At Insure Connecticut LLC, we help business owners structure and fund buy-sell life insurance agreements that protect ownership, stabilize operations, and keep your company in the right hands. If you own a business with partners, this isn’t optional protection—it's strategic planning.

What Is Buy-Sell Life Insurance?

Buy-Sell Life Insurance is a policy (or group of policies) used to fund a buy-sell agreement between business owners.

If one owner passes away:

  • The life insurance policy provides cash

  • The surviving owner(s) use the funds to purchase the deceased owner’s share

  • The business stays financially stable

  • The family of the deceased owner receives fair compensation

 

It creates a clean financial transition instead of a crisis.

Why Multi-Owner Businesses Need a Buy-Sell Agreement

Many Connecticut business owners assume verbal agreements are enough. They’re not.

Without a funded buy-sell agreement:

  • Ownership shares may pass to a spouse or heirs

  • Surviving owners may not have cash to buy the shares

  • The business may be forced to sell assets

  • Lenders may question stability

  • Legal disputes can arise

 

Buy-sell life insurance solves the liquidity problem immediately.

How Buy-Sell Life Insurance Works

There are two primary structures for multi-owner businesses:

Cross-Purchase Agreement

Each owner purchases a life insurance policy on the other owner(s).

  • When one owner dies, surviving owners receive the death benefit

  • They use those funds to purchase the deceased owner’s shares

 

Best for smaller partnerships (2–3 owners).

Entity Purchase (Stock Redemption)

The business itself owns the policies for each owner.

  • If an owner passes away, the business receives the death benefit

  • The business buys back the ownership interest

 

Often, it is more practical for companies with multiple partners.

At Insure Connecticut LLC, we help determine which structure makes the most financial and tax sense for your situation.

Who Needs Buy-Sell Life Insurance?

Buy-Sell coverage is ideal for:

  • LLCs with multiple managing members

  • Partnerships

  • Closely held corporations

  • Family-owned businesses

  • Professional firms (law, accounting, medical)

  • Contractors and trade businesses

  • Real estate investment groups

 

If more than one person owns your company, you should have a funded agreement.

How Much Buy-Sell Life Insurance Do You Need?

The policy amount should reflect:

  • The current business valuation

  • Ownership percentage

  • Outstanding debts

  • Future growth projections

 

We work with your CPA and attorney to align insurance funding with your legal buy-sell agreement.

Types of Life Insurance Used for Buy-Sell Agreements

Term Life Insurance

  • Cost-effective

  • Ideal for younger businesses

  • Covers a specific period (10–30 years)

Permanent Life Insurance

  • Lifetime coverage

  • Builds cash value

  • Useful for long-term succession planning

 

We review carriers and design policies customized for business continuity — not generic life insurance.

The Risks of Not Funding Your Buy-Sell Agreement

Many businesses have a legal agreement drafted by an attorney — but no funding mechanism behind it.

That’s a major vulnerability.

Without insurance funding:

  • Surviving owners may need loans

  • The company may use operating cash

  • Ownership disputes may occur

  • The deceased owner’s family may not receive fair value

 

Life insurance ensures immediate liquidity when it’s needed most.

The Risks of Not Funding Your Buy-Sell Agreement

Connecticut businesses face unique challenges:

  • Family-owned companies transitioning generations

  • Construction and contracting firms with multiple members

  • Professional practices are dependent on key partners

  • Real estate investment partnerships

 

Whether you're in Hartford, New Haven, Stamford, or anywhere in Connecticut, our team structures Buy-Sell Life Insurance plans tailored to your business model.

As independent insurance brokers, we compare multiple carriers to secure competitive pricing and strong policy design.

Why Work with Insure Connecticut LLC?

We are not tied to one insurance company.

As an independent broker, we:

  • Compare multiple top-rated carriers

  • Structure policies properly for multi-owner agreements

  • Coordinate with your CPA and attorney

  • Ensure correct ownership and beneficiary setup

  • Help avoid common tax and structural mistakes

 

Buy-sell planning is not just buying life insurance — it’s business strategy.

The Process: How We Set Up Buy-Sell Life Insurance

  1. Review ownership structure

  2. Confirm valuation method

  3. Determine agreement type (cross-purchase or entity purchase)

  4. Calculate coverage needs

  5. Compare life insurance carriers

  6. Implement and fund policies properly

  7. Schedule regular reviews as business value changes

 

Business grows. Coverage should grow with it.

Buy-Sell Life Insurance Form (Multi-Owner Business)

If you do not have the required life insurance information for other owners or managing members, they must complete the life insurance portion of this form independently. For accuracy and compliance, each proposed insured should provide and confirm their own personal, medical, and lifestyle information directly.

Helpful Blogs about Life Insurance

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