Sole Proprietor Buy-sell Plans Link

: Death benefits paid to the buyer are generally income-tax-free.

: The buyer (e.g., the key employee) typically owns the policy on the life of the proprietor and is the named beneficiary. sole proprietor buy-sell plans

: Premiums paid as bonuses are taxable income to the employee. : Death benefits paid to the buyer are

: The buyer agrees to purchase the business from the owner's estate at a predetermined price or formula upon a "triggering event" (usually death or permanent disability). a family member

: Typically a key employee , a family member, or even a competitor.