Cross purchase

{
  "id": "MLC-T-INS-001039",
  "term": "Cross purchase",
  "field": "Insurance and risk management",
  "definition": "An arrangement in business succession planning where each owner of a business agrees to personally purchase the shares of a deceased or departing owner. This is often funded by life insurance policies taken out by each owner on the lives of the other owners. Upon an owner's death, the surviving owners use the insurance proceeds to buy the deceased's interest.",
  "url": "https://mlchart.com/terminology/insurance/cross-purchase/"
}