Business Continuity: The Disability Buy-Out
Like most business owners, you probably have life insurance to protect your family against the financial impact of your premature death. You also insure your valuable assets against financial loss resulting from various casualties, such as fire or theft.

However, what would happen to both your personal income and the operation of your business should sudden disability force you to stop working? In businesses with multiple owners, how would the disability of one owner affect the "chemistry" of the business? Would the other owners want to buy out the disabled owner's share of the business? If so, where would the funds come from to accomplish the buy-out?

Just as a buy-sell agreement can be activated by the death of an owner, it can also be triggered by one owner's disability and funded by disability buy-out insurance. A properly designed buy-out agreement establishes the value of each owner's share of the business and creates a market for each owner's interest.

CRN200801-2012513

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