Buy-Sell Insurance Funding
A buy-sell agreement can describe how ownership changes when a shareholder dies or leaves. Funding planning asks whether the buyers will have the money to carry out that agreement when it matters.
Guidance from Ramandeep Singh in Brampton, serving Ontario and New Brunswick. Coverage and product availability depend on eligibility and province.
Where planning can help
After a covered death, insurance proceeds may provide funds for a share purchase under an agreement. The policy owner, insured person and beneficiary must align with the legal arrangement. Your lawyer and accountant should review the structure before implementation.
Death, disability, retirement and voluntary departure are different events. A life policy does not fund every possible exit. Review which events the agreement covers and whether insurance, reserves or another funding method addresses each one.
Revisit the agreed value, existing policies and premium commitments as the company changes. Underwriting, exclusions and available coverage affect the plan; a signed agreement alone does not guarantee that insurance can be obtained.
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