Buy-Sell Funding and Key Man Insurance

At PFI, we strongly recommend and structure strategic life insurance contracts that are purchased to protect a practice from the death or retirement of a physician, a key employee or a business partner. In the event of death to a business partner, the proceeds of life insurance provide the liquid funds to purchase the deceased owner’s interest in the practice. Funded buyouts maintain continuity of management and ownership within the group. If properly structured, these policies can also provide the necessary monies to buy out a retiring partner.

In the event of death to a partner or key employee, the utilization of Key Man Insurance can provide the funds to mitigate an otherwise severe financial strain while a suitable replacement is identified and transitioned into the practice.