What does Buy-Sell Agreement mean? Read on to discover the definition & meaning of the term Buy-Sell Agreement - to help you better understand the language used in insurance policies.
A buy-sell agreement is an arrangement that allows the division of business shares or interest among partners or shareholders in the event that one of the co-owners or shareholders retires, becomes disabled, passes away, or wishes to sell. In the context of insurance, life insurance is often purchased to provide the funds needed to buy the shares that become available.
We hope the you have a better understanding of the meaning of Buy-Sell Agreement.