Life Insurance can mean the difference between bankruptcy and survival when a business owner or key person dies.

There are two important concepts for a small business owner to consider - Buy-Sell Protection and Key Person Insurance.

Business Solutions:

Buy-Sell Protection &Key Person Insurance

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Proceeds from an insurance policy can be used

to purchase a business owner’s shares in the event of

his or her death or to train a successor for a

deceased key person.

Buy-Sell ProtectionA Buy-Sell Agreement defines a process whereby if a shareholder was to pass away the surviving shareholders must buy the deceased’s shares and the deceased’s estate must sell the shares for a predetermined price. Life insurance is used to ensure that cash is available at the time required, coverage is purchased on each shareholder’s life in an amount equal to the value of their shares.

Benefits

• Provides money to meet the purchase price.• Guarantees a buyer for the sale of the deceased’s interest.• Establishes a price at which the survivor will buy the

deceased’s shares. • Ensures an orderly continuation of the business.

Key Person InsuranceThe sudden, unexpected death of a key person results in a substantial loss to any business - the loss of expertise, as well as the high cost of securing and developing a competent successor. A key employee may be the president, sales manager, inventor, plant manager or shareholder. Key Person Insurance provides cash to the company through life insurance benefits should one of the key employees die unexpectedly.

Benefits• Provides tax-free funds to allow the company/organization to

recruit, hire and train a new employee.• It helps cover losses in profits during the readjustment period.• Prevents an unexpected death from harming or destroying

the business.

For more information,contact your local branch today.

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® Wawanesa Life and the tree logo are registered trade-marks of The Wawanesa Mutual Insurance Company and used under license by The Wawanesa Life Insurance Company.