Most business partnerships start with the best intentions, but not every partnership ends that way. That’s why buy-sell agreements are so important. A buy-sell agreement is a contract between business partners that dictates who can buy a departing partner’s share of the business and establishes a fair price for the partner’s stake. The agreement also describes how to determine a company’s value if all the owners decide to sell. Read more
Geraci Financial Group can help you set up an Executive Health Savings Plan to allow your shareholder clients own Critical Illness insurance jointly with their company. EHSP will pay their company a tax free benefit if they become critically ill. And, if they remain in good health and don’t submit a claim before the plan matures, EHSP will pay them a benefit.
In the event of critical illness:
the company receives a tax-free benefit payment upon diagnosis of one of the critical illnesses or conditions covered in the policy.
The lump sum could be used to:
- hire qualified replacement personnel.
- Pay an amount of money (e.g. a dividend) to the insured to cover the expense associated with a serious illness.
- Cover fixed business expenses.
- Limit the decrease in revenue or financial losses incurred as a result of temporary or extended absence from work
In the event of death:
The company can receive a lump sum equal to the paid premiums (minimum 25% of the sum insured). Read more