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For business owners

Buy-sell agreements

Whether you're in a partnership or a corporation, a buy-sell agreement funded by life insurance protects the business when an owner passes away — turning a potential crisis into an orderly transition.

By Trevor Perron, Independent Insurance Advisor · Serving Manitoba & Ontario

The problem it solves

When a co-owner dies, the surviving owners often face a hard question: where does the money come from to buy out the deceased owner's share — and who ends up as their new business partner? Without a plan, that can mean forced sales, disputes, or an unwanted heir at the table.

How it works

The agreement sets the terms in advance, and life insurance funds it. If an owner passes away, the insurance provides the cash to buy out their ownership stake — giving the deceased owner's family fair value and the surviving owners clean, uninterrupted control.

Why it matters

It's one of the most important protections an incorporated or partnered business can put in place.

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