Business partners rarely go into business together with the hope or expectation they will eventually be in business with their counterpart’s spouse or children. Crafting a detailed buy-sell agreement or shareholder agreement is an important device to ensure that if your business partner dies, becomes disabled, divorced or does something illegal, you will be able to purchase the partner’s interest and continue to operate the company without unexpected interference. Life insurance is commonly used to provide a funding device in the event of the untimely death of a business partner. Although premiums paid by the company for life insurance on the life of an owner are not tax deductible, the insurance proceed are also not taxable to the company. A detailed buy-sell agreement coupled with cross-purchase life insurance is a powerful tool to plan for the succession of your business.