Hello. Thank you for using JustAnswer.
You need to purchase a policy for each individual.
There is no all-inclusive policy to cover, for example, the first to die in case like this.
Typically, the parties enter into a buy-sell agreement and the company buys the policy on each of the principals.
When one passes, the company receives the insurance policy proceeds, which are then used according to the buy-sell agreement. Usually, the purpose is to prevent the surviving principal from having to due business with heirs or creditors. Instead, the surviving partner, in his/her capacity as agent of the business, uses the proceeds to buy the deceased partner's ownership interest out of the estate.
The company would then own that interest.
You could also purchase life insurance policies on the principals. This would be separate from typical buy-sell agreement policies.
Please let me know what follow-up questions you have. If my above responses have been helpful, please click Accept so that I get credit for the time/effort. You may always restart the thread and ask follow-up questions at any time by clicking the “Reply” button at the bottom of the question/answer thread. You can access this thread later in your profile under the “My Questions” tab.
Is there any place on line I could get a free copy of a typical buy-sell agreement?
When I was in life insurance sales a few years ago there was something called a joint policy, it would average the ages of the people. They were both covered for the buy-sell agreement only.
Does that sort of policy still exsist
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).