What financial product is purposefully aimed at providing stability to a business after a partner's death?

The financial product that is specifically designed to provide stability to a business following the death of a partner is buy-sell agreement insurance. This type of insurance supports a buy-sell agreement, where remaining partners can use the insurance proceeds to purchase the deceased partner's share of the business. This ensures that the business can operate smoothly without the potential complications that arise when a partner passes away, such as disputes with heirs or the risk of a business takeover.

By having this insurance in place, the surviving partners are better positioned to maintain control and continuity of the business. This arrangement helps ensure that the business remains stable and that there is a clear path for transferring ownership, which can be crucial for both the financial health of the business and the interests of the deceased partner's family.

In contrast, key person insurance is designed to protect a business from the financial loss incurred due to the death or disability of an essential employee, but it does not specifically facilitate the purchase of a deceased partner's interest. Disability insurance provides coverage in the event of a partner becoming disabled, and annuity policies primarily serve as retirement income solutions rather than addressing business ownership transitions after a partner’s death.