Life Insurance and Buy-Sell Agreements
There are several key advantages of using life insurance to fund a buy-sell agreement:
- Complete financing is guaranteed from the beginning.
- Proceeds may be free from income tax.
- Cash values can be used for a buyout due to retirement or disability. (Death benefit amount will be reduced if cash value is withdrawn from policy.)
- It is generally the most economical method.
- Credit position is strengthened.
Western & Southern Life does not give tax advice. Please contact your tax advisor for information that applies to your situation.