Life Insurance for Business Partners (Discounts & Rates)

You can buy life insurance for business partners as long as you have their consent and proof of insurable interest. On average, life insurance rates for business partners cost $26 per month. However, premiums depend on age, medical history, current health, and lifestyle choices. Invest in enough coverage to buy your partner's shares and keep your business afloat should a tragedy occur.

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D. Gilson is a writer and author of essays, poetry, and scholarship that explore the relationship between popular culture, literature, sexuality, and memoir. His latest book is Jesus Freak, with Will Stockton, part of Bloomsbury’s 33 1/3 Series. His other books include I Will Say This Exactly One Time and Crush. His first chapbook, Catch & Release, won the 2012 Robin Becker Prize from Seve...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: May 19, 2021

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The Highlights

  • Life insurance for business partners is essential; establish it in your buy-sell agreement if possible
  • Larger businesses with multiple partners should consider an entity-redemption plan
  • Invest in enough coverage to purchase your late partner’s shares and support your business

Life insurance for business partners is essential. You should establish a cross-purchase or entity redemption plan in your buy-sell agreement.

Below, learn how to purchase business life insurance and discover the right coverage for you and your partner.

You can compare life insurance quotes for business partners by entering your ZIP code into our free rate tool above.

What are the average life insurance rates for business partners?

Can you buy life insurance for someone else, like a business partner? In truth, it is almost always essential to buy life insurance for business partners.

Not only does this help you purchase the business shares from your late partner’s heirs, but it also keeps your business afloat while you regroup.

Compare life insurance rates for business partners at different term lengths for a policy with a $250,000 death benefit below.

Average Monthly Life Insurance Rates for Business Partners by Term Length
AgeFemale Average Monthly Rates for a 10-Year TermMale Average Monthly Rates for a 10-Year TermFemale Average Monthly Rates for a 20-Year TermMale Average Monthly Rates for a 20-Year TermFemale Average Monthly Rates for a 30-Year TermMale Average Monthly Rates for a 30-Year Term
25-years-old$9.31$10.25$11.22$12.74$15.28$18.27
30-years-old$9.31$10.37$11.41$12.83$16.47$19.25
35-years-old$9.77$10.61$11.83$13.45$18.72$21.69
40-years-old$11.62$12.68$15.15$18.02$24.07$29.00
45-years-old$15.51$17.41$22.16$27.39$34.70$44.58
50-years-old$20.74$24.31$30.66$39.90$52.40$68.97
55-years-old$29.03$37.57$47.87$62.49$92.40$128.52
60-years-old$41.73$59.38$76.93$106.67N/AN/A
65-years-old$66.52$103.91$134.30$200.43N/AN/A
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How much coverage should you buy? Invest in enough to purchase your late partner’s shares and support your business during the tragedy.

Search for the best life insurance company for business partners near you by comparing providers online.

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How do you buy life insurance for a business partner?

There are two common ways to purchase life insurance when you’re a business owner, either as a cross-purchase or an entity-redemption plan.

Often, you determine details about life insurance on your business partner in your business’s buy-sell agreement.

If you don’t already have a buy-sell agreement, create one with your business partner.

Otherwise, you risk suddenly going into business with their spouse or children should your partner pass away.

A cross-purchase means each partner takes out a policy on the other person, making themselves the beneficiary. If one partner dies, the other uses the benefit to purchase the other’s shares.

This type of plan is best for small businesses with only two co-owners.

In an entity-redemption plan, the business purchases separate policies for each partner, and the company is named the beneficiary. If a partner dies, the firm uses the death benefit to buy their shares.

This type of plan is best for larger businesses establishing multiple partners’ life insurance coverages.

In both cases, you’ll need consent from your business partner as well as proof of insurable interest or financial dependence. In this case, your business is the insurable interest.

According to the U.S. Department of Health and Human Services, consent means your partner signs a written paper permitting the insurer to access their medical records.

Life Insurance for Business Partners: The Bottom Line

In most cases, business partners should invest in proper life insurance for one another as part of your buy-sell agreement.

Not only does coverage from the best insurance companies keep you financially safe if a tragedy occurs, but it can also keep your business afloat.

You can secure affordable life insurance for business partners right now by entering your ZIP code into our free quote tool below.

Are you looking for free insurance quotes?

Your one-stop online insurance guide. Get free quotes now!

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