Protect Your Business Against the Loss of a Partner's Contribution
If the buy sell agreement you have with your partners or shareholders only offers limited protection, you may want to consider disability buy sell insurance.
For example, disability buy sell insurance can help ensure your business has the funds available to purchase the interests and/or shares of a partner who becomes permanently disabled and is unable to continue working. The existence of a formal disability buy sell agreement is very important, as it will govern the terms of the buy-out.
Consult with your advisor or contact us for more information or for assistance in structuring disability buy sell coverage for your business. RBC Insurance® can help you structure the coverage that will best suit your business.
Details of Disability Buy Sell Insurance:
Your plan cannot be cancelled until the insured person reaches age 64 or terminates full-time employment with your business for reasons other than Total Disability.
Significant benefit amounts are available and the owners of the business may choose to receive monthly payments, a single lump sum payment or a blend of the two.
This choice of benefits provides flexibility in the timing of the proceeds of the sale, possibly allowing potential tax advantages to be realized.
Benefits may become payable after 360 days of Total Disability.
Coverage may be available for purchase for persons aged 18 to 60.
The policy may be owned by the corporation or partnership, or each owner can own a policy on each of the other owners.
The company must be a partnership or professional corporation that has been in business for at least three years and has a net worth of at least $50,000.
You can purchase the right to increase coverage at a later date.
Choose the insurance that best suits your business
Consult with your advisor or contact us for more information or for assistance in structuring Disability Buy Sell Insurance for your business.
