Depending on the structure of the business and how the sales contract works, insurance policies may themselves be the owners or be taken out beyond the lives of other owners, or be owned by the company or by an agent of a pension fund. In the case of a business unit, the purchase-sale contract may provide that the company pays the insurance premiums. For example, the agreement may prevent owners from selling their shares to outside investors without the consent of other owners. Similar protection may be granted in the event of a partner`s death. The buy-sell agreement may take the form of a cross-purchase plan or a buyback plan (entity or withdrawal of shares). For more neutrality and efficiency of the buyout agreement, the service of a corporate agent is recommended. Purchase and sale agreements are often used by individual companies, partnerships and private businesses to facilitate the transition to ownership when each partner dies, annuities or decides to leave the business. The advantage of a buy/sell contract is that it allows for a smooth transfer of shares, avoid potential disputes over the value of the business, the value and price of the dollar, the timing of payment, the calculation formula or method used (if any, by a predetermined third party, the source of the funds and a clear definition of how the purchase is financed to acquire the interests of the deceased shareholder, and other terms of sale. An overview below shows how a buy/sell process works without life insurance and with life insurance: Eric Benchetrit is a financial services industry advisor and head of vordenkleiter, which is considered by his colleagues to be one of the most informed and competent authorities in his field and provides financial advisors, life insurance agents and related industry experts with expertise in tax planning and complex success planning. Eric`s business approach uses a tireless commitment to professionalism and attention to detail using a collaborative and integrated planning style that works with the entire client`s consulting team.
His communication style describes complex structures in easy-to-understand terms. For more than a quarter of a century, he has held various positions in the financial services industry, including marketing and distribution at the executive and wholesale levels for Canadian insurance and investment firms. He has also taught Seneca College`s Practical Financial Services Certification Program, whose graduates receive credits for CFP (Certified Financial Planner) and CLU (Chartered Life Underwriter).