The owners sign a buy-sell agreement that says who buys an owner’s shares, and at what price, if they die or become disabled. Life insurance funds the purchase if an owner dies. Disability buy-out insurance funds it if an owner becomes disabled for the period the agreement sets. Either way, the remaining owners keep the business, and the owner or their family receives fair value in cash. Your lawyer drafts the agreement, and we work with them and your accountant so the coverage matches it.
How does buy-sell insurance work in Canada?
Reviewed by Garrett Agencies Ltd., October 2026. How we write
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More about buy-sell insurance
Funds an agreement between co-owners, so the business and each owner’s family are protected if one dies or becomes disabled.
More questions about buy-sell insurance
- How is the value of a business partner’s share determined for buy-sell insurance?
- Are premiums for buy-sell insurance tax-deductible in Canada?
- What are the benefits of having buy-sell insurance for Canadian businesses?
- Can buy-sell insurance cover multiple partners in a Canadian business?
- Is buy-sell insurance mandatory for businesses in Canada?
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