Trap 1
The spouse at the table
Without liquidity, survivors may negotiate with an estate or spouse who never ran the shop.
Partner continuity · Buyout funding · Partner Advisory Desk
Fund Your Buy-Sell. Protect the Company’s Future.
Cross-purchase and entity-redemption designs — coordinated with your attorney and CPA. Accelerated paths for many qualifying partners. Carriers decide.
Don’t Let an Unfunded Buy-Sell Force You into Business with Your Partner’s Spouse.
- Cross-purchase: partners own policies on each other
- Entity redemption: the business owns the policies
- Face amounts often discussed in the $1M–$5M per partner range when the valuation requires it — not a universal no-exam or issue promise
- Accelerated / simplified underwriting for many qualifying applicants (exams when the carrier still requires them)
- Coordinated with your attorney and CPA — we fund; they draft
Informational analysis request — not a quote and not instant issue · Partner Advisory Desk · Independent Licensed Insurance Representative
Gregory M. Sloan, CLU®, ChFC®
Licensed Insurance Representative · NPN 2145633
Partner Advisory Desk / Funding Desk
Buyout funding screen — not a quote engine
Tell us the shape of the deal. We use this for a confidential Call or Text. Not a personalized quote. Not guaranteed issue or price.
Funding structures
Two common ways to fund the promise
| Cross-purchase | Entity redemption | |
|---|---|---|
| Who owns the policies | Each partner owns a policy on the other partner(s) | The business owns policies on each partner |
| Who gets the death benefit | Surviving partner(s) (as owners/beneficiaries per design) | The company (to redeem the interest) |
| When it often fits | Fewer partners; partners want personal ownership | More partners; company-centered redemption |
| Watch-outs | More policies as partners grow; ownership hygiene | Entity rules, creditor, and tax facts matter — ask your CPA/attorney |
Structure is a legal and tax choice. We help size and place the insurance funding. We do not draft the agreement and do not give tax advice.
Three costly traps
Trap 2
Fire-sale math
Forced buyouts without cash often mean debt, dilution, or a sale nobody wanted.
Trap 3
Paper without powder
A signed agreement that cannot pay is a lawsuit waiting for a funeral.
Three steps to fund it
Step 1
Map the agreement
Call or Text. Confirm cross-purchase vs entity, valuation method, and who must be insured. Bring your attorney/CPA into the loop when needed.
Step 2
Accelerated path (when partners qualify)
Where product rules allow, simplified or accelerated underwriting — sometimes no exam — for many qualifying applicants. Face-amount caps (including discussions around $3M–$5M) vary by carrier and state. Some files need full underwriting. Carriers decide.
Step 3
Align paperwork + issue
Coordinate ownership and beneficiary design with counsel. Issue subject to carrier underwriting. Bind when you choose.
FAQ
Is life insurance for a buy-sell tax-deductible?
Often premiums are not deductible in common setups — but facts differ by structure and entity. This is not tax advice. Consult your tax advisor / CPA before you assume a deduction.
Do we need an attorney if we already have a template?
Yes if the document must work under your state’s law and your entity type. We fund; we do not replace counsel.
Cross-purchase or entity redemption — which is “better”?
Neither is universally better. Partner count, tax posture, and creditor concerns drive the choice. Your attorney and CPA lead; we size the insurance.
Can every partner skip medical exams?
No. Many qualifying applicants can use accelerated paths. Others still need exams or records. No universal no-exam face amount.
What does Calculate Buyout Funding actually do?
It starts an informational analysis request — a private screen with a Licensed Insurance Representative. It is not a guaranteed quote or instant issue.
Ready to size the funding?
Partner Advisory Desk · Funding Desk · Independent Licensed Insurance Representative
Informational analysis request — not a quote and not instant issue
Call 800.365.TERM (800-365-8376) · Text / Direct 754-313-6200 · greg@insureprotector.com