In fact, there is a way. . by purchasing life insurance through a company-sponsored incentive plan. In case of good structuring, the financing of a “Cross Purchase” plan thus has all the advantages of a traditional buy-sell agreement, with the added advantage of the leverage effect of income tax in order to reduce the expense costs of the owners. Let`s look at the pros and cons of a life insurance-financed buy-sell contract for your business: value based on insurance income. In the case of a purchase-sale contract, it is not uncommon for the purchase price of an interest in a closely owned business to be the amount of the proceeds of an owner`s life or disability insurance. While this is a simple method, it may or may not come close to fair value. This deviation can cause problems for the cashed owner. Insurance agent.