DisabilityBroker.com
Disability Buy Out Coverage
Disability Buy Out Coverage

Provides funding to buy out a disabled partner.

What are the chances of a partner becoming disabled?

Chances of a Disability Lasting 90 Days or More Prior to Age 65

Number of Partners in Your Company
Age
1
2
3
4
5
10
25
29.7%
50.6%
65.3%
75.6%
82.8%
97.1%
30
29.4%
50.1%
64.8%
75.1%
82.4%
96.9%
35
28.8%
49.4%
64.0%
74.4%
81.8%
96.7%
40
28.2%
48.4.%
63.0%
73.4%
80.9%
96.4%
45
27.1%
46.8%
61.2
71.7%
79.4%
95.7%
50
25.3%
44.2%
58.3%
68.8%
76.7%
94.6%
55
22.6%
40.0%
54.5%
64.0%
72.1%
92.2%

What happens if a partner is disabled?

  • How long will you pay him?
  • When will you have to hire a replacement?
  • How long will you pay both?
  • Could you afford to buy him out?

What would be the impact on the company's:

  • Sales
  • Profits
  • Overhead
  • Credit lines
  • Loan repayment capability
  • Partnership buy-out plans
  • Retirement plans
Disability Buy Out Coverage

Consider Disability Buy Out Coverage

Here is how a Disability Buy Out policy works:

  • If you are totally disabled under the policy, an amount of money becomes payable to assist in the funding of your buy and sell agreement.

Own Occupation Coverage included

  • You are totally disabled if, due to injury or sickness, you are: unable to perform the substantial and material duties of your regular occupation; under the care of a physician; and, not performing any work for the business in which you performed your regular occupation.
  • The physician’s care requirement will be waived if further care would be of no benefit.
  • Your regular occupation is your occupation at the beginning of the disability. If you have limited your practice to a professionally recognized specialty in medicine, dentistry, law or accounting for at least three months immediately prior to your disability, that speciatly will be deemed to be your regular occupation.

Other requirements apply, refer to actual policy


Funding Methods Available

Lump Sum Payment will be made in a single sum following the commencement date.
Downpayment Payment will be a lump sum followed by monthly installments for up to 60 months.
Monthly Payment will be made in monthly installments for up to 60 months.

Policy will pay an amount equal to the total Buy-Out Expense owed to you by the Owner, but not more than the Benefit Limit shown on the data page of your policy.

Refer to policy for actual details

Written proof of the following must be provided before benefits become payable:

  • A copy of the buy-sell agreement in effect when your total disability begins;
  • The buy-out expense amounts and the dates these amounts are due;
  • The method of valuation of the business;
  • The identity of all buyers of you ownership interest including each buyers name and address.

Call 386-264-1511 to request a proposal and discuss options.

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