If your prospects cannot fully fund their buy-sell agreements, then they may want to consider partial funding. Insurance can be used to provide a down payment, with the balance of the purchase price to be paid in installments — all of which should be spelled out in the agreement. It is always possible to go back and provide additional funding later and amend the terms of their buy-sell plans.

No matter which funding arrangement is adopted, however, don't wait for clients' attorneys to do their jobs before you do the most important part of yours. As mentioned under Salary Continuation Plans, you should recommend that the insurance be applied for first. This also allows the underwriting process to go forward while the plan is reviewed by the business's attorneys. By policy provision, Ohio National allows the business one year to develop an agreement.

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Ohio National is not affiliated with, nor does it endorse or sponsor, any particular prospecting, marketing or selling system.

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