Your company may have life insurance to help protect the organization against adverse financial consequences that may result from a partner’s death. However, you shouldn’t overlook, and fail to plan for, a partner’s disability. A disability could make continued ownership of a partnership in a business all but impossible.
Disability buy-sell insurance is designed for small business owners to
provide funds for the purchase of the insured’s share of ownership in the
business in the event he or she is totally disabled. The policy is primarily
designed for small partnerships and professional corporations. The owner may be
the business, a trust, or each owner may own a policy on the other owners. The
existence of a formal Buy-Sell agreement is required.
The concept of disability as it relates to a partner’s active participation
in a business is often far more difficult to define and describe than most other
buy-sell triggering events. For purposes of the buy-sell agreement, a disability
Buy-Sell policy can provide, not only the funding for a partner buy-out, but the
definition of total disability. This allows the insurance carrier, acting as an
objective third party, to determine if a disability has occurred.
Prefer to speak to someone about a disability buy-sell insurance
policy?
TALK TO A FINANCIAL PROFESSIONAL
These policies has exclusions and limitations. For costs and complete details of
coverage call your agent or MassMutual at 1-800-272-2216 for a referral to an
agent.