Partnership Insurance is a life insurance arrangement between business partners that ensures smooth and financially secure ownership transition in the event of a partner’s untimely death or permanent disability. It provides the surviving partner(s) with the necessary funds to buy out the deceased partner’s share, preventing legal disputes, business disruption, or involvement of the deceased’s heirs in active operations.

This type of insurance is usually structured under a Buy-Sell Agreement or Cross-Purchase Agreement, where each partner is insured for their ownership stake. The payout helps maintain business stability, avoids the forced sale of company assets, and ensures that the deceased partner’s family receives fair compensation for their share.

At Rajlaxmi Wealth Creator, we help design LIC-backed Partnership Insurance solutions that are customized, tax-efficient, and legally compliant — providing clarity, continuity, and peace of mind to all stakeholders.