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After narrowing down your retirement possibilities, you’ve probably decided to sell your insurance agency. Now that you’ve found someone who wants to purchase your insurance book of business for sale, you’ll want to know more about the different ways you can get paid.  

Insurance Book of Business for Sale 

How To Get Paid When Selling an Insurance Book of Business

Cash Out Over Time

If you know you’re done and you don’t plan to get back into the insurance business, this is the best way to go. When you’re ready to retire, you don’t really need a lump sum upfront. However, you’ll want to ensure a good value and an income that’s guaranteed for a fixed period of time, even if the buyer ends up losing all the business.  

Cash Out Immediately

This option involves a lump-sum payment that’s paid in a single payment rather than broken up into several installments. Although most people will probably prefer the option that allows them to cash out over time, being paid all at once can make more sense in certain scenarios.  For instance, if you’re moving to another state, an upfront buyout is the best option for you.  

A lump-sum payment also makes sense if you’re dealing with a health issue. You want to make sure that your customers are well taken care of and your family is left with the money instead of the insurance business.  

Hybrid or Partnership

If you’re looking to become a part of something bigger than yourself, the hybrid or partnership option may be the best choice for you. This requires you to obtain a fair and solid valuation of your business that both you and your prospective partner can agree with. This option allows you to receive a big check upfront which represents a percentage of the agency’s value. 

Furthermore, the buyer will pay you an income until you’re ready to retire. When the fixed time period is over, the buyer settles up with you on the remaining percentage you left on the table on top of any new business you managed to accumulate during that specific time period. 

Insurance Book of Business for Sale 

Do You Have an Insurance Book of Business for Sale?

At Energia Consulting Partners LLC, we’re here to help you maximize the value of your business. Contact us today for inquiries.