In an entity (stock-redemption) buy-sell plan, the life insurance is owned by:
Explanation
In an entity or stock-redemption plan, the business owns the policies on each owner and uses the proceeds to purchase (redeem) the deceased owner's interest from the estate, keeping the buyout centralized in the company. The owners do not each hold policies on one another (that is the cross-purchase approach), and employees and customers are not parties to the funding. Entity plans are often simpler when there are many owners, since the business holds one policy per owner rather than many cross-owned policies.
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Related questions on this topic
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