Being co-owners of a business means there is always a chance one of you could assume sole ownership one day. Sometimes this can happen if one co-owner leaves the business, whether by force or voluntarily. Other times, it happens when a co-owner passes away.
With your business partner and co-owner as the beneficiary of your life insurance funded buy-sell agreement, they will receive the death benefit and can use it for the good of the company.
There are several ways to arrange the buy-sell agreement with life insurance, but each generally does the following: