Businesses change in value, however, especially during a recession. For example, say the company is paying buy/sell insurance on a 60-year-old co-owner for a $20,000 annual premium. If the business is worth less, then the payoff amount that the policy covers needs to be reduced in order to save cash. As the business recovers in value, insurance has to be adjusted again and also going forward, depending on the health of the partners.
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