I actually know of a case of dentists that were partners.  They considered getting the buy/sell policies on each other.  One of the dentists got the policy; the other did not.  A few months later, the one that got the policy died of a sudden heart attack.  If the surviving partner had also purchased a buy/sell life insurance policy, he could’ve easily paid the widow for the deceased partner’s portion of the business.  But instead there was a lot of drama.

A buy/sell agreement with life insurance is not always appropriate for all companies.  However, it can be a great investment and insurance plan for partnerships and other small businesses.