Response: "Perhaps you can. But why assume 100 percent of the risk when we can do it for just pennies on the benefit dollar. Will you always be able to make the installment payments? The life insurance ensures that the necessary funds will be available exactly when they're needed. Self-funding may be more of a risk than your families want to take."

Objection: "We're considering using our group insurance to fund our buy-sell agreement."

Response: "Generally, that may not be the best solution for you. Using group term life insurance to fund a buy-sell agreement may cost you the business deduction for your group premium, and create additional income tax."

Objection: "Instead of buying insurance, can't we just establish a side fund of investments?"

Response: "Yes. But you'll have to let me know when each of you is going to die or become disabled. Then, I can let you know how much money to set aside. Wouldn't you rather protect your cash flow by funding this agreement for just pennies on the benefit dollar?"