A disability buy-sell agreement must be funded to guarantee that promises made will be promises kept. The agreement may be legally binding, but without funding, there's no assurance that enough money will be available in the business when it's needed and for as long as it's needed. Though it is possible to fund a buy-sell agreement with savings, from cash flow, or even through a loan, the best and only guaranteed way is with disability buy-sell insurance.

Insurance funding of a buy-sell agreement guarantees the right amount of cash will be available at the exact time it's needed, thus leaving cash assets and future business earnings intact.