It gives the remaining owners the money to buy an owner’s shares if they die or become disabled, without using savings, loans or the business’s cash. The owner or their family receives fair value in cash, and the shares stay with the owners. It can also reassure employees, lenders and clients that the business will carry on.
What are the benefits of having buy-sell insurance for Canadian businesses?
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 does buy-sell insurance work in Canada?
- 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?
- Can buy-sell insurance cover multiple partners in a Canadian business?
- Is buy-sell insurance mandatory for businesses in Canada?
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