Protect Your Business Partnership — and Its Future
A well-built business deserves a plan for every “what if.”
At Rocky Mountain Insurance Advisors (RMIA), we help Castle Rock business owners secure Buy-Sell Agreement Insurance — ensuring ownership transfers smoothly and fairly if a partner passes away or becomes disabled.
Buy-Sell Agreement Insurance is a life or disability insurance policy that funds a legally binding agreement between business partners.
If a partner dies, becomes disabled, or leaves the company, the policy’s benefit provides the cash needed for the surviving owners (or the business itself) to buy out that partner’s share — without financial strain, loans, or disputes.
It ensures business continuity, stability, and peace of mind for everyone involved.
In small and closely held companies, ownership and management are often tied to key individuals. Without a funded buy-sell agreement, a partner’s death or disability could force:
Sale of the business to outsiders
Family members inheriting ownership but not involvement
Disputes over valuation and control
Financial hardship for surviving partners
Buy-Sell Insurance ensures that ownership stays in the right hands and that both the departing owner’s family and the business are treated fairly.
The Agreement:
Business partners create a buy-sell agreement detailing what happens if one partner dies or becomes disabled.
The Funding:
Each partner (or the business) owns a life insurance or disability policy on the others.
The Event:
If a triggering event occurs, the policy’s proceeds are used to buy out the deceased or disabled partner’s share, ensuring smooth ownership transition.
This process protects both the business’s value and the partner’s family’s financial security.
RMIA helps Castle Rock business owners design the structure that best fits their goals:
Cross-Purchase Agreement:
Each partner owns and pays for a policy on the others. Common in small partnerships (2–3 owners).
Entity (Stock Redemption) Agreement:
The business owns policies on all partners and buys back the departing owner’s shares.
Hybrid Agreement:
A flexible combination of both — allowing either the company or individual owners to complete the buyout.
Independent & Local: We represent multiple carriers to find the best terms for your partnership.
Business Expertise: Since 2003, RMIA has helped Colorado companies plan for continuity and succession.
Tax & Legal Coordination: We collaborate with your attorney and accountant to ensure your agreement is properly structured and compliant.
Custom Coverage Options: We tailor life and disability policies to your specific ownership percentages and business value.
Fast Setup: We make the process simple — from valuation review to policy delivery.
Any business with two or more owners — including partnerships, corporations, or LLCs — benefits from a funded buy-sell plan.
The agreement defines how ownership is transferred; the insurance provides the funding to make that transfer possible.
Typically life insurance for death benefits and disability insurance for situations where an owner can’t continue working.
Coverage is usually based on each owner’s percentage of the company’s value and adjusted as the business grows.
Generally, no. However, the proceeds are typically received tax-free when used for a buyout. Consult your CPA for specific guidance.
Experience clarity, confidence, and care with every step — from discovery to claim.
We assess your coverage needs and explain everything in plain language — no jargon, no confusion.
As an independent agency, we partner with multiple carriers to bring you the most competitive coverage options.
When you have a question, change, or claim — we’re just a call away, ready to assist you personally.
Secure your business’s future today with a buy-sell insurance plan built to protect your hard work and your partners.
Let RMIA guide you every step of the way.
