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Life Health > Life Insurance

Optional Scenarios

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Scenario 1
Jerry and Elizabeth plan for the business to pass to their eldest daughter at their death as her inheritance. A survivorship life policy owned by Jerry’s other two children (or by a trust if they are too young) pays benefits to them after both parents have died. At the same time, the print shop is transferred to their oldest daughter. Each child is thereby assured an equitable inheritance.

Scenario 2
Jerry and Elizabeth and their oldest daughter enter into a buy-sell agreement. The daughter owns the survivorship policy, which will provide her money to buy the business from her parents’ estate when both have passed away. This, in turn, provides an inheritance from the estate for the other two children.

Scenario 3

Wanting his key employee to take over the print shop, instead of his oldest daughter, Jerry and the key employee establish a buy-sell agreement. The employee owns and pays for a survivorship life policy. When Jerry and his wife have passed away, the employee purchases the company from their estate with the policy benefits. These funds can in turn be used to provide an inheritance for their three children.