Get a loan from!Specialty InsuranceBusiness InsuranceFixed AnnuitiesHome InsuranceAuto and Vehicle InsuranceLife InsuranceHealth Insurance Professional Liability InsuranceGroup Health Insurance for BusinessesOtherBusiness Liability InsuranceWorkers CompensationCommercial Auto & Truck InsuranceBusiness Owners Insurance
Agent Finder

Business Insurance Explained
What to look for in a business insurance plan.

Group Health Insurance
Find out about group health insurance plans.

Workers Compensation Plans
Find out about workers compensation insurance plans.

Insurance Audits
Learn about what to expect from an insurance audit.

Employment Practices
Find out why liability insurance may be needed.

Tips to Lower Premiums
How to lower business insurance premiums.

Stock Redemption or Cross-Purchase
Learn stock redemption and cross purchase business plans.

Business Property Coverage
Answers to questions concerning property insurance.

Advantages of Stock Redemption
Answers to questions concerning stock redemption.

Family Business Insurance
Answers to questions concerning family business insurance.

Mortgage Finder
Credit Card Finder
Personal Loan Finder
Debt Consolidation Finder

Check out what recent and past consumers have to say about our services.

Business Insurance
Business Ownership

Every business owner will eventually get out of the business. In the absence of a child or other relative who can take his or her place, an owner needs to plan for the sale of his or her ownership interest.

Ownership in a small business often has little market appeal to anyone other than those already involved in the business. Consequently, the obvious buyers are the remaining owners.

A buy-sell agreement guarantees a buyer for a retiring or deceased owners interest in a business, thereby allowing the owner (or the owners heirs) to recover his or her investment. The agreement also fosters the continuation of the business by not allowing the departing owners interest to fall into the hands of outsiders - persons who may not be qualified to run the business or who may be incompatible with the remaining owners

* If an owner wishes to retire, he or she must first offer to sell the interest to his or her associates, or to the business itself, before selling to a third party.

* Upon the death of an owner, the surviving owners or the business must buy, and the estate must sell , his or her interest.

* The purchase price is fixed or the agreement contains a formula to determine the price.

Stockholders implementing a buy-sell arrangement must generally chose between a stock redemption plan and a cross-purchasing agreement. Under a stock redemption plan, the corporation agrees to redeem the shares of a stockholder at his or her retirement, death or, perhaps, disability. The redeemed shares become treasury stock. To fund the redemption, the corporation owns and is beneficiary of a life policy insuring each stockholder.

Under a cross-purchase agreement, the stockholders agree to purchase the share of a withdrawing or deceased stockholder. To fund the purchase, each stockholder owns and is beneficiary of a policy on the life of every other stockholder.

There are no fixed rules for determining which type of buy-sell agreement is most appropriate for stockholders' particular needs and objectives. However, each type of arrangement has advantages that the stockholders need to consider.

About | Glossary | Links | Disclaimer | Privacy | Suggest | Affiliate | Advertise | Agent Log-In

Insurance Tracker is the 100% advertiser supported insurance search engine. We are not a carrier, agent or broker. When you choose to inquire with an advertiser on Insurance Tracker, your information remains between you and that advertiser(s). Advertisers are solely responsible for keeping their information current.

Insurance Quotes From Agents Near You: Alaska | Alabama | Arizona | Arkansas | California | Colorado | Connecticut | Delaware | Washington DC | Florida | Georgia | Hawaii | Idaho | Illinois | Indiana | Iowa | Kansas | Kentucky | Louisiana | Maine | Maryland | Massachusetts | Michigan | Minnesota | Mississippi | Missouri | Montana | Nebraska | Nevada | New Hampshire | New Jersey | New Mexico | New York | North Carolina | North Dakota | Ohio | Oklahoma | Oregon | Pennsylvania | Rhode Island | South Carolina | South Dakota | Tennessee | Texas | Utah | Vermont | Virginia | Washington | West Virginia | Wisconsin | Wyoming

Find The Perfect Insurance Policy: Individual and Family Health Plans | Corporate Group Health Plans | Long Term Care (LTC) | Disability Insurance | Senior Health Insurance | Dental Insurance | Vision Health Plans | Rx Drug Savings Plans | Term Life Insurance | Whole Life Insurance | Universal Life Insurance | Fixed Annuities | Auto Insurance | Senior Auto Insurance (Age 55+) | Motorcycle Insurance | ATV Insurance | Boat Insurance | Watercraft Insurance | RV Insurance | Homeowners Insurance | Condominium Insurance | Renters Insurance | Business Owners Insurance | Commercial Auto & Truck Insurance | Workers Compensation | Liability Insurance | Mortgage Protection Insurance is a Venture Click company.  Powered by ZipSearch!
Copyright © 2003 InsuranceTracker® All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.