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Cross purchase agreements are a great way to ensure business continuity. In a scenario with three co-owners, each partner buys a life insurance policy on the other two partners. This means that partner A buys insurance on partners B and C, partner B buys on partners C and A, and partner C buys on partners A and B. Each partner becomes the owner and beneficiary of the policies, insuring the lives of the other two partners. This arrangement helps secure the business in the event of a partner's passing.
