A version of this article originally published in the September 2019 issue of Thomson Reuters` estate planning journal. Buying and selling agreements are critical when it comes to a narrow business, but are often ignored or briefly shrunk by business owners. Life insurance is an effective instrument for entrepreneurs to implement the provisions of a purchase-sale contract by providing liquidity to their business and family in the event of the death of an owner. A properly developed buy-sell contract is the key to avoiding conflicts and reminding how life insurance income will be used in the event of the death of a business owner. The creation of a separate life insurance unit is increasingly being used by practitioners in the planning of purchase-sale agreements to avoid tax and other pitfalls. The triggering events of a buy-sell contract can go beyond death and voluntary transfers for life. A possible involuntary transfer, such as a transfer that could result from divorce or bankruptcy, may also trigger purchase rights or obligations. Other events may be the permanent disability of the owner or the termination of an owner`s employment with the business. The purchase-sale contract determines the value of the interests of a transferring owner. .