Buy/Sell Plan
The Buy/Sell Plan is ideally suited for owners of privately-held businesses.
It’s designed to provide funds to help enable the business or one or more business owners to purchase the shares or ownership interest of a totally disabled shareholder or partner.
Some of the advantages of having a Buy/Sell Plan include:
- Fixed expense protection against potentially costly and unproductive drain on business
- Suppliers and creditors may be reassured
- Being able to use the benefit to fund the disability buy/sell agreement in whole or in part
- Definition of disability for purposes of the buy/sell agreement can be linked to the definition of disability in the Buy/Sell Plan
- Third party decides whether the definition of disability has been met
- Helps reduce potential resentment among shareholders or partners
Optional Riders
Help protect your future insurability with the following optional benefit riders.
Future Insurability Option Rider and Future Needs Rider
Often income rises over a person’s working years and health may deteriorate. Although most people feel they fully insure themselves when they buy a disability insurance policy, they may find the original amount of disability insurance becomes insufficient as their careers and needs change. Unfortunately, these people may not qualify medically to buy additional coverage at a later date.
These riders help alleviate this problem by guaranteeing that you can buy additional coverage, subject only to financial underwriting on specified option dates, regardless of your state of health.
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