In an Entity Purchase Plan, the business entity applies for, pays the premiums for, and is the owner and beneficiary of policies on each owner. The example below illustrates that should Owner A die or become disabled, the business receives the cash from Ohio National and purchases the business interest from Owner A or his or her estate, according to the terms of the buy-sell agreement.

Note: Several factors can enter into determining which type of buy-sell agreement to use. A client should always consult an attorney when making these decisions.

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