Disability Buy-Sell: A Backup Plan for Partnerships

How to explain the need:

Stop and think. If your business partner becomes disabled and is unable to pull his or her weight, how will you feel in six months? How will you feel in two years? How will your partner feel in two years? This kind of situation easily results in awkward personal relationships and crippling financial strain. A far smarter alternative is to have a backup plan in place — before disability strikes.

A disability buy-sell policy protects both partners while saving countless businesses and relationships. Do you understand how this coverage helps you prepare for all the what-ifs?

How to explain the product:

Disability buy-sell insurance policies are for small businesses with partners or several owners. This policy is often coupled with an individual disability policy. It allows a company to remain operating if one of the owners becomes disabled.

The disability buy-sell policy provides cash for another owner to purchase the disabled insured’s share of the business. This policy does not replace income, rather it protects the business. The benefits of this policy are twofold, the disabled owner receives his value of the business and the business remains intact and fiscally stable.