How can a business owner take steps to ensure that funding will be available to enact a succession plan?

Look to life insurance! A carefully crafted business succession plan is vital to the successful ownership transition of any business. This is especially true for family-owned businesses which, according to the Small Business Association, survive transfer to a second generation at a rate of only 1 in 3. A well-structured buy-sell agreement can help ensure a successful transfer of business ownership at either a mutually agreeable point in time or upon the occurrence of a future event such as the death or incapacitation of an owner. However, even the most meticulously crafted buy-sell agreement is useless if there are no funds available to put it into action. Properly tailoring a life insurance plan with living benefit riders can ensure the availability of funds not just upon the death of an owner, but also in the event of retirement, chronic illness, incapacitation, or other contingencies.