--- title: A Buy Sell Agreement is Simply Not Enough! (Video) description: Discover why a buy sell agreement is not enough and how you, as a life insurance producer, can help your clients fund their business succession plan. image: https://blog.lwtagency.com/hubfs/A0E44193-3881-4E7C-8534-FA207F8DBF7D.jpeg --- [Skip to content](https://blog.lwtagency.com/buy-sell-agreement-not-enough#main-content) [![LWT Agency](https://blog.lwtagency.com/hubfs/lwt-logo-1.png)](https://lwtagency.com) # LWT Agency Since 1927 - [About](https://lwtagency.com/team) - [Services](https://lwtagency.com/services) - [Resources](https://lwtagency.com/resources) - [Get A Quote](https://lwtagency.com/get-a-quote) - [Contact](https://lwtagency.com/contact) - [Producer Insights](https://blog.lwtagency.com) This is a search field with an auto-suggest feature attached. - There are no suggestions because the search field is empty. # A Buy Sell Agreement is Simply Not Enough! (Video) [LWT Agency](https://blog.lwtagency.com/author/lwt-agency) May 12, 2020, 11:20:00 AM No quod sanctus instructior ius, et intellegam interesset duo. Vix cu nibh gubergren dissentias. His velit veniam habemus ne. No doctus neglegentur vituperatoribus est, qui ad ipsum oratio. Ei duo dicant facilisi, qui at harum democritum consetetur. ![](https://blog.lwtagency.com/hubfs/A0E44193-3881-4E7C-8534-FA207F8DBF7D.jpeg) *Editor’s note: This post was originally published on 12/6/16 and has been updated for accuracy and comprehension.* ## Why is simply creating a buy sell agreement not enough? Creating a buy sell agreement is not enough because it needs to be funded before it’s worth anything. Make sure your clients’ business succession plan is in place with a funded buy sell agreement. ## Buy sell agreement: you need more The bottom line is, your buy sell agreement needs to be funded. If your clients don’t plan ahead, they’re basically planning...to fail. Business-succession strategies are the key to success, but most business owners don’t spend enough time planning it out. Your clients may not know that they can fund a buy sell agreement via life insurance. But that’s where you come in as providing a value-add to the approach. Watch the video to learn how you can [help your clients](https://lwtagency.com/accelerate-life-insurance-sales/) go beyond a buy sell agreement and ensure a smooth business succession strategy. ## VIDEO TRANSCRIPT ## Fund your buy sell agreement The old saying, “Failing to plan is planning to fail,” can be especially true when talking with clients about their business succession plans.  Business-succession strategies should be a dynamic conversation with your business owner clients. Frankly, most business owners are so focused on growing their business that they just don't pay attention to their own plans.  On a priority scale of 1 to 10, with 10 being the most urgent, many business owners are usually about a negative one when it comes to their own succession plans.  In fact, I was at a recent meeting with one of our clients and his very successful client was a closely held business worth in-excess of 50 million dollars. When we asked a question about his [buy sell agreement](https://blog.lwtagency.com/buy-sell-agreements-business-clients-video), he produced a draft that his attorney had prepared about two or three years ago and that's as far as it got. Other projects took over and nothing was done. But that's probably not uncommon.  Okay, so not every business is worth 50 million dollars, but I would argue, if it's 50 million or 500,000, the impact to a business will be the same when a business owner dies without a succession plan.  The first step in planning for a business succession is for your client to create a buy sell agreement. Most buy sell agreements need to be funded, and that's where you come in. Life insurance is the answer in most cases. And that's where we come in. We have the tools to help you discuss this strategy with your clients.  Give us a call and let's talk about how we can open doors on your next business succession case. Remember, a buy sell agreement that is not funded is not worth the paper that it's written on. 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