Definition - What does Partnership Insurance mean?
Partnership insurance is a type of insurance that is commonly purchased by partners in a business. It generally involves partners purchasing life insurance policies on each other and naming themselves as the beneficiary. This way, if one of the partners dies, the other can use the life insurance payout to purchase the deceased partner's share of the business.
Insuranceopedia explains Partnership Insurance
Partnership insurance protects businesses by helping to prevent a third partner from coming in and purchasing a partner's share when they die. With partnership insurance, the control of the business is generally consolidated into the surviving partner's hands.
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