Death in a Partnership Can Be the Death of a Partnership by:Rick Hoogendoorn

Howdy Partner ! Now let's imagine for a minute that you and I actually was partners

. Partners in business. Now, one problem, of course, is that if one of us died, why, we'd end up being in business with the deceased partner's kinfolk. If I died first, you'd end up in business with my son Jethro. And Jethro, well, he's a dope.

One solution, then, might be a buy / sell agreement funded by life insurance. This is where the company takes out a joint first-to-die life insurance policy on both of our lives. Then, if one of us died, the death benefit would be paid into the company's capital dividend account, and from there it would be used to buy the shares of the heirs. If I died first, you'd end up with the entire companyand no Jethro.

So if you're really in business, and you really have a partner, perhaps you should be considering who you are really going to be in business with if your real partner dies. Do you want to be in business with your partner's spouse or children? If not, how will you buy them out?

Life insurance is the best tool there is for dealing with the financial problems created by a death. While it could take you years to accumulate enough free capital to buy out a deceased partner's heirs, a life insurance policy would cover that problem off as soon as the coverage is approved.

For more information about the uses of life insurance, visit http://www.chericrause.com/insurance1.htm

About the author

Rick Hoogendoorn is a life insurance agent in Victoria, British Columbia. This article is not meant to replace personalized insurance planning advice from your local professional. Rick is a Certified Senior Advisor and is currently creating www.seniorsvictoria.com.

rick.hoogendoorn@shaw.ca

POST COMMENT

UK Credit Card Debt by:Sean Turner What to Expect from Your Logo Designer by:Angelina OConnor Becoming A Battle Hardened Real Estate Veteran Without All The Scars: Seven Steps That Real Investors Make by:Chris Anderson, PhD Government Buying And Selling On The Internet by:Christina DeMers Consumer Buying Guidlines by:John Parsons Scams to Watch For by:John Parsons Essence Of Self Certified Mortgages by:James Taylor Poster Digital Printing for Growing Business by:Kristine Llabres Tips to Attain an Effective Poster Digital Printing by:Kristine Llabres Five EASY Ways to Improve Your Business Writing by:Melinda Copp 8 Penny Stocks to Avoid by:Peter Leeds Small Business Pricing Strategies by:Sharron Senter The Easy Days by:Sylvia White