Broker Check

Lisa Raye Hund, ChFC® CExP™ MBA


What is Business Continuity?

Business continuity encompasses planning and preparation to ensure that an organization can continue to operate in case of serious incidents or disasters and is able to recover to an operational state within a reasonably short period of time.

The ability to fund a buy-sell agreement is a major part of continuity planning and needs to be thoughtfully planned out to insure continuity of the business.  Typical uses of funding vehicles are life and disability insurance policies to provide immediate cash flow to the entity and partners.

Cross Purchase

Strategy When There Are 2 Owners.

Surviving Owner Gets Stepped Up Basis

Complex With 3+ Owners

Unfair With Age Gaps, Health Conditions or Ownership Percentage


Cross Purchase Buy Sell 


Entity Purchase

Only One Policy Per Owner

Easier to Administer With 3+ Owners

Loss of Stepped Up Tax Basis

Policies Are Exposed To Creditors Of The Business 




Entity Purchase Buy Sell

Special Purpose LLC

Equalizes Funding of Policies

Stepped Up Basis

No Transfer of Value Issues

Creditor Protected






Special Purpose LLC Buy-Sell