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Cross purchase agreements allow business co-owners to continue their business by purchasing life insurance policies on each other. For example, if a business is valued at $300,000 with three equal owners, each owner would buy a policy on the lives of the other two partners. This means that each partner is both the owner and beneficiary of the policy on the other partners, ensuring that in the event of their death, the business can continue smoothly. This arrangement allows each partner to have insurance on the lives of the other two partners, creating a secure and stable business structure.