Buy–sell funding
Ownership transition planning.
Who this is for
- Business partners and co-owners
- Shareholders in closely held companies
- LLC members and partnerships
- Anyone with a buy-sell or similar ownership agreement
What it covers
Buy-sell funding uses life insurance (and sometimes disability) to fund the purchase of a deceased or disabled owner’s interest per a buy-sell agreement. Proceeds provide liquidity so remaining owners can acquire the interest and the business continues. Structure (entity vs cross-purchase, etc.) and amount depend on the agreement and valuation; licensed professionals can advise.
Common use cases
- Funding partnership or shareholder buyout at death or disability
- Keeping ownership within the business or chosen successors
- Providing liquidity for estate and family
- Aligning with operating or shareholder agreements
Structuring considerations
Entity vs cross-purchase (or hybrid), ownership and beneficiaries, valuation method and review, and coordination with legal and tax advisors. Licensed professionals we connect you with can advise on structure and alignment with your buy-sell agreement.
How Stead helps
We help you request the right buy-sell funding and connect you with properly licensed professionals. We do not sell or issue insurance. Coordination includes clarifying agreement terms, ownership, beneficiaries, and ongoing review.
Stead does not sell, place, negotiate, or bind insurance. We connect you with properly licensed professionals. Insurance products are offered by licensed third parties and subject to underwriting and state regulations.