Wealth &
Protection Planning

Business Disability Insurance

When you purchase disability insurance to help protect the business, it provides benefits, in the event a business owner becomes disabled.  These benefits can help to pay for regular overhead expenses or to purchase an owner's interest in the business. 

  •  Business Overhead Expense Insurance (BOE) - Provides funds to reimburse owners for regular overhead expenses, while they are disabled, in order to help keep the business operating.
  • Buy-Sell Disability Insurance - Disability Buy-Sell Insurance is designed to provide funds to small business owners for the purchase of the insured's share of ownership in the business in the event he or she becomes totally disabled.  The policy is primarily designed for small partnerships and professional corporations.  The owner may be the business, a trust, or each owner may own a policy on the other owners.  The existence of a formal Buy-Sell agreement is required.  The concept of disability as it relates to a partners active participation in a business is often far more difficult to define and describe than most other buy-sell triggering events.  For purposes of the Buy-Sell agreement, a disability Buy-Sell policy can provide not only the funding for a partner buy-out, but the definition of total disability.  This allows the insurance carrier, acting as an objective third party, to determine if a disability has occurred.  

Contact a STRIVE Wealth Advisor for more information about business disability insurance. 

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