A buy-sell agreement is a contract among business owners specifying what happens to a deceased owner’s interest in the business — who buys it, at what price, and how it’s paid. Without a buy-sell, the deceased owner’s interest typically passes to their estate or heirs, which can create operational chaos (heirs as accidental business partners) and valuation disputes. Life insurance funds the agreement — each owner takes out a policy on the other owners’ lives (or the company takes policies on all owners), with the death benefit providing the cash to actually execute the buyout. For small business owners in DC, MD, and VA, this is one of the most underappreciated uses of permanent life insurance — and one where the planning value far exceeds the premium cost. We coordinate with your business attorney and accountant on the buy-sell structure.