Funding Your Buy-Sell Agreement with Tools Other than Insurance

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Although life insurance is considered the most popular funding method for a buy-sell agreement, there are alternative funding methods available. These can be used instead of or in conjunction with life insurance. The life insurance alternatives include:

  • Cash

  • Borrowings

  • Installment payments

  • Private annuity

  • Stock redemption

  • Sale-leaseback

  • Appreciated property bailout

  • Deferred compensation

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