Sole Proprietor Buy-sell Plans (2026)

: Death benefits paid to the buyer are generally income-tax-free.

Life insurance ensures the buyer has the funds to fulfill their legal obligation to purchase the business. sole proprietor buy-sell plans

: Business-paid premiums are generally not tax-deductible. Essential Plan Components : Death benefits paid to the buyer are

: The buyer agrees to purchase the business from the owner's estate at a predetermined price or formula upon a "triggering event" (usually death or permanent disability). sole proprietor buy-sell plans