Buy-Sell Agreement Funded by PFLI

Securing Business Continuity: A PFLI-Funded Buy-Sell Agreement


This case study highlights how Premium Financed Life Insurance (PFLI) provided a strategic solution for Mr. Thompson and Mr. Green, partners in a successful technology company. They sought a secure method to ensure business continuity and protect their families’ interests.

Key Objectives:

  • To establish a fair and funded buy-sell agreement.
  • To ensure business continuity and family security.

The Challenge

Both partners were concerned about the potential impact on the business if one of them passed away unexpectedly. They needed a solution that would not only provide immediate liquidity for a buyout but also preserve the business’s value and stability.

The Solution

Strategy Overview:

A PFLI-funded buy-sell agreement was structured to address these concerns. Key steps included:

  • Policy Selection and Financing: Selecting and financing life insurance policies on each partner.
  • Agreement Structuring: Drafting a buy-sell agreement that used the life insurance proceeds to fund the buyout.
  • Integration into Business Planning: Ensuring the strategy was integrated seamlessly with their overall business plan.

The Results

The PFLI-funded buy-sell agreement significantly strengthened the business’s succession plan:

  • Financial Security for Families: Provided a clear and fair method for transferring business interest, securing financial stability for the surviving family.
  • Business Continuity: Ensured that the business could continue smoothly without financial strain.
  • Tax Efficiency: The life insurance proceeds provided a tax-efficient method of funding the buyout.


The case of Mr. Thompson and Mr. Green demonstrates the effectiveness of using PFLI to fund buy-sell agreements, offering a practical solution for business continuity and family protection.

Interested in securing your business's future with PFLI? Reach out to us for a tailored consultation.