Document background
The Business Continuation Agreement Life (Insurance) is a crucial document for Canadian businesses seeking to establish a clear succession plan in the event of an owner's death. This agreement is particularly vital for privately-held companies, partnerships, and professional corporations operating under Canadian federal and provincial jurisdiction. It combines elements of business succession planning with life insurance funding mechanisms, ensuring business continuity while providing fair compensation to a deceased owner's estate. The agreement typically includes provisions for policy ownership, premium payments, business valuation methodologies, and transfer procedures. It's designed to comply with Canadian insurance regulations, tax laws, and corporate governance requirements, while addressing practical business needs such as maintaining stable operations during ownership transitions.
