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if an entrepreneur co-owns a business then life insurance can fund a buy sell agreement in the event of an owners sudden death im going to pause for a second so im currently working with a client today whose husband owns or owned a restaurant chain worth about lets say 20 to 30 million dollars he passes away there was no buy sell agreement the spouse now has multiple attorneys to figure out what her half of the business is because she takes it over when her husband died if there was a policy in place within that buy cell the policy would have paid off the spouse the other guy that survived would own the company complete and it would be clean but that didnt happen so now theres a lot of litigiousness going on a key man policy protects the firm from going under in the event that the key personal passes away before a replacement is found