Life Insurance for Tennessee Business Sellers

Sale proceeds likely increased your estate significantly, potentially creating estate tax liability. Life insurance provides liquidity to pay estate taxes without forcing heirs to sell assets. It also replaces any personal coverage you had through the business.

If you had key person insurance on yourself, the business owns it. The sale agreement should address this—the policy might be surrendered, transferred to you, or maintained by the buyer. Review this with your M&A advisors.

If your sale includes earnout provisions (payments contingent on future performance), your death could void those payments. A life insurance policy equal to the maximum earnout protects your family's expected inheritance.

Before is often better—you may have more favorable financials, and some carriers view business owners more favorably than retirees. Lock in coverage while you're still actively running the business.

Premium financing lets you borrow to pay life insurance premiums, preserving your capital. It's suitable for high-net-worth individuals with $1M+ liquid assets who want large coverage without liquidating investments. The policy serves as collateral.