Using Life Insurance to Fund a
Business Buy-Sell Arrangement
by Loren W. Tauer
Department of Agricultural, Resource,
and Managerial Economics Cornell University
Many successful businesses, including farms, are closely held, with only a few owners.What happens to these businesses if one of the principal owners dies?Do they continue?Often the remaining owners can manage the business quite successfully.Their problem is the financial ability to buy the deceased owner’s share of the business from the estate or heirs.A solution might be a buy-sell arrangement funded with life insurance. More…