I had a client who was a partner in a business that was too stressful to work for and took too much time away from his family. He was one of three people who were doing all the ductwork and CAD work for this HVAC installation company. They were in the process of breaking away from their employer and starting their own business from scratch.

The new company was located in a tiny warehouse, and the partners were doing the work internally and putting in a massive number of hours — 60 to 80 per week. One of the partners was bought out. I then sat down with the partner who was doing the financials, and we talked about setting up a buy-sell agreement with the remaining partner. I gave him several reasons why it was important to have coverage, emphasizing, “What if this happens to you? Is this something you want to resolve?” They knew I wasn’t just there trying to sell them something.

The partner handling the financials was completely on board. However, the other partner was a single guy in his 40s, and he was resistant to the idea, saying, “It’s $5,000 we don’t need to spend right now.” I replied, “Look, I believe this is important and a benefit to you.” Finally, he recognized that it was a significant step, and it all came together for him.

Fast forward about three years. The single partner eventually got married and, two months later, was diagnosed with cancer and passed away within a year. It was so ironic that three or four years after taking out this policy, the guy who had been fighting the coverage was the one with the survivors who benefited. The $1 million payout was enough for the remaining partner to become liquid, buy out the deceased partner’s wife’s stake and allow the business to continue. Some refinancing was due on the building and the loan, but the insurance provided liquidity for the business to transition.

It was a unique situation because one partner fought the insurance on the grounds that he didn’t need it. He was healthy and at the time didn’t have any dependents who needed the money. But the other partner saw the value that I was presenting, and today that business has exploded and is in multiple states. I have 14 applications in underwriting right now for partnerships on all the different partners inside the group. A couple of the other partners — the higher-up partners who are making money — are even looking at some different split-dollar structures.

So, to sum things up, this little case started as a small company with a couple of partners. One didn’t want the buy-sell agreement but eventually agreed to it, and the policy paid off and had a major impact on the business. I don’t want to take all the credit, because the other partner’s passion also had an impact, but I think the knowledge I shared with them and the trust I built was key.