Business Life Insurance – Protect Your Business & Partnership


Bridger Insurance Agency offers Business Life Insurance solutions through Ohio National to protect you, your partner and any heirs to the business partners family. Buy-sell planning is an effective way to provide for an orderly change of ownership when a business owner dies, retires or becomes disabled.

A buy-sell agreement is an agreement providing for the sale of a business when a specified “triggering event” happens. Generally, triggering events include death, disability and/or retirement.

A fully funded buy-sell agreement can:

  • Predetermine the price at which the buyer agrees to purchase, and the owner agrees to sell, their interests in the business.
  • Create a market for each owner’s share of the business.
  • Provide money to fund the purchase at the exact time it is needed.
  • Establish the business’ value for federal estate tax purposes.

Advantages during a business owner’s life

For all business owners: A funded buy-sell agreement gives business owners the peace of mind that comes from planning for their and their families’ financial security.

For creditors, suppliers and customers: A funded buy-sell agreement helps to assure such people that the death or disability of a business owner will not disrupt the day-to-day operations of that business.

For employees of the business: Buy-sell planning provides employees with a sense of security that comes from business continuity.

Advantages after a business owner’s death, disability or retirement

For all remaining business owners: A fully funded buy-sell agreement gives surviving owners or the business the opportunity and the cash to purchase an exiting owner’s business interest at a fair price.

For the exiting business owner’s heirs: A fully funded buy-sell agreement guarantees that the exiting owner (or their heirs) will receive a fair price for their business interest.

For a deceased business owner’s estate: A funded buy-sell agreement can convert a deceased’s business interest – a non-liquid asset – into the cash needed to pay funeral and administration expenses, debts, death taxes, and other estate settlement costs.

How it works

  1. Business owners adopt a plan that will accomplish an orderly transfer of the business upon a business owner’s death, disability or retirement. Many buy-sell agreements cover all three of these triggering events. This buy-sell plan also will help meet their expectations in planning for their families’ financial security.
  2. Insurance policies purchased from Ohio National will help provide the cash needed for the purchase of the business interest. Life insurance and disability buy-sell income insurance are the funding vehicles of choice for most business owners as they provide income tax free benefits at the exact time they are needed.
  3. At death (or disability) of business owner, death benefit proceeds (or disability benefits) pass income tax-free to the remaining business owners or business.
  4. The remaining business owner(s) end(s) up with the business.
  5. The deceased business owner’s family (or the disabled owner) receives a fair price, in cash, in exchange for the business interest.
  6. At retirement of a business owner, permanent, cash value life insurance (if properly structured and funded) can be used to help with the buy-out of a retiring business owner.  Life insurance cash values can be accessed in such a way to provide income tax-free cash flow.  The policy cash value can be used to assist with a retirement buy-out.  This strategy helps ease the cash flow pressure that a business may otherwise experience when an owner retires.

Whatever your financial needs or goals, Ohio National has the products and financial strength that can protect you and your business.

Talk to an Ohio National representative to see how our products can help you. Life changes. We’ll be there.®

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