Have you thought about what will happen to your business when you die, retire, or if you become disabled? Is it probably one of the toughest issues that you will have to face as a successful business owner. Proper planning is absolutely essential.

Take the next step is securing the future of your business by meeting with a licensed financial professional. He or she will work with you and your other professional advisors to help implement a plan that's tailored to your needs.

• Buy/Sell Arrangements
• Key Employee Protection

A properly structured buy/sell arrangement can provide for the sale of your business to a co-owner, employee, family member, or other interested party. Not only does it create a ready market for your business, it also establishes the method for valuing the business at the time of sale.

A buy/sell arrangement funded with life insurance may be the most important step you take in securing your financial future and the continued operation of the business you have worked so hard to make a success. If you use life and/or disability income insurance¹ to fund the obligations under this arrangement, you can be assured that the cash will be available when you need it.

1. The business owner and the family member enter into an agreement obligating the family member to purchase the owner’s business interest at death, disability or withdrawal, and obligating the business owner/estate to sell. An attorney drafts this agreement.
2. The family member obtains life and/or disability income insurance¹ on the life of the business owner. The family member is the owner, beneficiary, and premium payer of the policy.
3. At the death or disability of the business owner, the family member receives the policy proceeds income tax free [IRC§ 101(a)].
4. The family member pays the business owner or his or her estate according to the terms of the buy-sell agreement.
5. The business owner or his or her estate releases the business interest to the family member.

What determines the value of your business? Many things do. It is more than just the value of your inventory, contracts and equipment. In fact, your most valuable business assets are the talents, managerial skills, and experiences of your key employees as well as your own. When a key employee is lost because of disability or death, the financial loss to your business can be devastating. But you can protect your business from such a loss through the use of life or disability income insurance.¹

With life or disability income insurance¹ protection on a key employee, the policy benefits will be paid to the business to be used to help meet debt obligations, offset lost sales, or cover the expenses associated with recruiting, hiring, and training replacement personnel.

1 Availability of disability income insurance varies by carrier and state.

Neither the Prudential Insurance Company of America, nor its affiliates-nor its sales professionals render legal or tax advice. You should consult with your attorney or tax advisor regarding your particular situation.