The advantage of a buy/sell contract is that it allows for a smooth transfer of shares, avoid potential disputes over the value of the business, the value and price of the dollar, the timing of payment, the calculation formula or method used (if any, by a predetermined third party, the source of the funds and a clear definition of how the purchase is financed to acquire the interests of the deceased shareholder, and other terms of sale. A major difference between a captive agent and an independent broker is the number of insurance agencies they represent. Captive agents are usually paid by a single insurance agency and can generally only sell its policies, while independent brokers work for themselves and offer a much wider choice of products representing multiple carriers, which usually means that their customers can find the lowest price or the best value. Purchase and sale agreements are often used by individual companies, partnerships and private businesses to facilitate the transition to ownership when each partner dies, annuities or decides to leave the business. If many business owners wish to enjoy the benefits of a cross-purchase contract while avoiding the risks associated with a cross-purchase, the creation of a limited liability company managed by managers (“Insurance LLC”) should be considered in order to maintain and manage the insurance policies that ensure the lives of entrepreneurs. Existing policies owned by the owners can be transferred to Insurance LLC or new policies can be purchased by Insurance LLC. Each member of Insurance LLC is designated as the economic beneficiary of life insurance policies that insure other members whose interests in that member`s operating entity are required to purchase to death under the operator`s sales contract. Life insurance must also designate Insurance LLC as a beneficiary. Insurance LLC is owned by all policies that provide centralized management and creditor protection for policies it has taken out and avoids the inclusion of inheritance tax for their owners, benefits that are not otherwise available if individual owners own the policies.