Is your business incorporated and does it consist two or more share holders? Then you need a buy and sell agreement. Many business owners overlook to put their own health conditions as part of your financial plan. Is your business is ready and completely prepared for critical illness, disability or death of one of its partners or owners?
In case you lose a partner or business owner, you business can go downfall due to loss of sales or trust from your creditors. In some case your business can go even bankrupt.
>> Get advice from a business life insurance advisor here
Consider these frequently happening situations:

• Close down the business - after all the time, energy and money invested, this may not be a practical option
• Continue the business with a new partner (i.e., spouse of the deceased)
• Sell your shares - who will buy them and at what price?
• Purchase the shares from the deceased owner's estate

Buy and Sell Agreement is Your Solution
One of the biggest considerations when it comes to a succession of business is a business and financial plan that you can create through the Buy/Sell Agreement.
This particular type of agreement will cover all terms of operation and ownership of the business. It is a common solution after disability or death of one of the owners, especially because disagreements can rise afterward and cause a business to fail.
Therefore, you should implement the Buy/Sell Agreement as the best formula possible for simplifying and valuing your business in case your business partner or owner dies.
The agreement features these important points:
 Who will be the one that buys all shares?
 What are the general terms of the sale?
 What is the overall price that you have to pay?
 Where the money used for buying shares is coming from?
 When the sale will take place?
You need to setup the right funding so that you can make your agreement valid and viable. Without funding, agreements will fall apart because remaining owners are obligated to purchase shares of departed/diseased partner, even though they cannot do it.

The best solution is to buy life insurances that will cover the cost in case one of the share holders dies. The funding is be coming from the death benefits of the life insurance
What type of Life Insurances Should the Business Owners buy?
One of the least expensive solutions for getting buy/sell funding is by letting each shareholder to buy their own individual life insurance. The death benefit should go the other shareholders as beneficiaries.
Life insurances can also add the following options: Critical Illness and Disability. This will cover a whole range of different health issues for the share holders.
Benefits of Funding Buy/Sell Agreement with Life Insurance Policies
 You can obtain the general value for the diseased so that you can maintain the business your spouse created and brought to life.
 Surviving partners and owners will; obtain unrestricted and complete ownership as a result.
 It depends on how you create an insurance contract, but processes are tax-free.
 Even though it depends on the nature of the insurance contract you decide, but the process will happen soon afterward the disability or fatality so that you can bring your business up and avoid bankruptcy and losses.
By choosing Aha Life Insurance , you will get everything you need when it comes to insurance coverage's that will protect both you and your business against these situations.

Author's Bio: 

Tim is a business financial advisor in Vancouver, Canada. Helping clients to grow their money with different financial solutions. Independent financial broker to help you invest in mutual funds and segregated funds.