Title: The Importance of Disability Buy-Out Insurance | LifeInsure
Headings: The Importance of Disability Buy-Out Insurance
The Importance of Disability Buy-Out Insurance
Richard Reich
The Disability Buy-Out Should be Mandatory
One Product with Many Solutions
Incorporating the Disability Buy-Out into the Buy-Sell Agreement
Tax Implications to Consider
Consider the Options

Content: Disability buy-out insurance premiums are certain, predictable, and anticipated. At this crucial time in the life of the small business and its proprietors, disability buy-out insurance moves the burden of financing the buyout from the individual small business owners and the business to the insurance company. One Product with Many Solutions
In addition to providing financial security to the owners and the small business, disability buy-out insurance resolves various conflicting issues that will confront the remaining business owners and the disabled owner in the circumstance of an owner’s disability: Where will the business owners get the money to buy-out the disabled owner? Will the disabled business owner sell their interest in the business to a competitor? How long can the business continue to operate with the disabled business owner? In addition to the security of protecting vital financial resources for health-related or other expenses, disability buy-out insurance funds give the disabled owner peace of mind that his or her investment in the small business will be reclaimed: Where is my ROI for founding and growing the business? Why would I let remaining business owners run the business using my money? How can I recover my investment capital?