Some call it a continuation plan or a will for a business. Whatever you call it, a buy-sell agreement is often vital to the continuation of a business.

Just consider what might happen to the type of business you have if you would die.

• Would your sole proprietorship be liquidated?
• Would your partnership or limited liability company be dissolved?
• Would corporate shareholders face the financial and legal complexities of buying your shares or facing the unknown of a powerful new shareholder?

You can plan to make your business as stable and well managed as possible through a buy-sell agreement. It makes sense and it's good business.

Four sound reasons for a buy-sell agreement

1. Your business will continue to be managed properly because a buy-sell agreement makes sure your estate sells your business interest to those you choose. There will be no unwanted owners in your business future.
2. Your estate will have liquidity by converting your business interest to cash. That cash can be used to settle the estate and establish an income stream for your beneficiaries. You'll have an affordable market for your business or stock at a fair, agreeable price.
3. You'll have a guarantee of a fair, reasonable price for your business. A purchase price will be established among all parties while the business is vital, not when it's vulnerable to a lower price after your death.
4. You'll have a fair method of arriving at an acknowledged business value for federal estate tax purposes. That's valuation the IRS generally accepts if the agreement is set up properly.

Contact your financial representative with Thrivent Financial for Lutherans to find out how a buy-sell agreement funded with insurance could help your business.

Why most businesses need life insurance to fund a buy-sell agreement

There are several ways to fund a buy-sell agreement. One would be setting aside cash from your earnings. Another way would be borrowing money to fund the agreement.

Thrivent Financial for Lutherans recommends life insurance as the most sensible, efficient way to accomplish the task. It offers a buyout guarantee.

After your attorney draws up the actual buy-sell agreement, your financial representative with Thrivent Financial for Lutherans can help you fund your buy-sell agreement with life insurance.

Discover for yourself why life insurance might be the best funding choice for your buy-sell agreement.

Why a corporation needs a buy-sell agreement

Corporations prepare for all kinds of eventualities. Tragedy can be an element in those plans. When someone dies, many lives can change and the course of a business may be altered. Without a plan, the death of a key shareholder like you may cause:

• Legal and financial complications.
• Impaired credit.
• Uncertainty among shareholders and customers.
• Confusion and declining morale among employees.
• An unwanted linkage of surviving shareholders with people who don't know your business.

Thrivent Financial for Lutherans encourages you to plan now. It's in the best interest of your corporation.

Ask your financial representative with Thrivent Financial for Lutherans to talk with you about:

• A cross-purchase buy-sell agreement funded with life insurance.
• A stock-redemption buy-sell agreement funded with life insurance.

Why a partnership or limited liability company (LLC) needs a buy-sell agreement

When a business partner or member of your LLC dies, your business could die with it unless you've made arrangements for a continuation agreement.

Your failure to plan ahead for your partnership or LLC could:

• Force an asset liquidation at fire-sale prices.
• Create an unwanted partnership with the deceased partner's or member's heirs.
• Cause weakened credit.
• Induce waning customer confidence.
• Deflate employee morale.

There are several ways your partnership or LLC could continue when you die:

• A new partner or member could join the business. This is never a certain plan for business success.
• Your heirs could buy out your partners or the other members. This method is rarely successful.
• Your partners or LLC members could buy out the heirs. This plan maintains business ownership and control and helps your heirs get cash in exchange for their business holdings.

Life insurance from Thrivent Financial for Lutherans can help your business continue.

Ask your financial representative with Thrivent Financial for Lutherans how a buy-sell agreement can help your business partnership through:

• A cross-purchase buy-sell agreement funded with life insurance.
• An entity buy-sell agreement funded with life insurance.

Why a sole proprietor needs a buy-sell agreement

As a sole proprietor, you and your business are intertwined. Your death could also mean the death of your business. That could cause many problems including:

• Your employees could be out of a job.
• Customers and clients could be at a loss for services.
• Competitors could take advantage of a weakened business position.
• Your estate could be in turmoil because of debts and tax liabilities.
• Your heirs might have to settle for below market prices.

A buy-sell agreement can help your sole proprietorship by naming a buyer at a pre-agreed price creating stability and peace of mind for your heirs.

Flexibility can create opportunities for a key employee to buy the business through life insurance. You also could leave your business to a family member.

Who can help you design the plan you need?

Your attorney will draw up the buy-sell agreement and your financial representative with Thrivent Financial for Lutherans will show you how to fund the agreement with life insurance.

Whether you are involved in a sole proprietorship, partnership, limited liability company or corporation, a buy-sell agreement is in your best interest.