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Buy Sell Insurance
(Buyout Insurance)

Fund the buyout of a business partner in the event of death or disability with life & disability insurance that is specially designed for buy-sell puposes.

Facts That May Surprise You

Partnership Risk

A firm established by two 35-year old co-owners faces a 75% probability that at least one owner will sustain a long term disability prior to age 65.

graph showing a 75% probability of one business partner being disabled

Allan B. Checkoway; Insuring the Disability Hazard in the Small Closely Held Corporation; Journal of the American Society of CLU & ChFC; January 1985, based on 1964 Commissioner's Disability Table

Large equity positions can make it difficult to cash out a Principal in the event of death or disability due to the sheer size of the transaction. 

A long, drawn-out process is not in anyone's best interests as delays only introduce unnecessary economic risk, legal risk, and complexity. 

 

Life insurance covers the death risk.  But disability is 2-3 times more probable than premature death, and should not be overlooked.


Specialized disability insurance products designed for business buy-sell funding have several features that ordinary disability income and group LTD plans lack.   Crucially, buy-sell products involve an lump sum payout up front, avoiding the mess that would follow if the disabled business owner recovers after the buy-sell has been triggered.   

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Benefits and premiums depend on individual risk factors, such as occupation, earnings stability and health.  

Contact us today to learn more about insurance to fund your buy-sell agreement.

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