Your company may have life insurance to help protect the organization against adverse financial consequences that may result from a partner’s death. However, you shouldn’t overlook, and fail to plan for, a partner’s disability. Disability Buy-Sell insurance is important because a partner disability could make continued ownership of a partnership in a business all but impossible.

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 partner’s 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.

Prefer to speak to someone about a disability buy-sell policy?

TALK TO A FINANCIAL PROFESSIONAL

*NY state residents: please call 1-800-272-2216 for referral to an agent.

This policy [Policy Form Bsell-00 and Bsell-00(NC) in North Carolina] is issued by Massachusetts Mutual Life Insurance Company, Springfield MA 01111-0001.

This policy has exclusions and limitations. For costs and complete details of coverage call your agent or MassMutual at 1-800-272-2216 for a referral to an agent.

This policy provides disability income insurance only. It does NOT provide basic hospital, basic medical or major medical insurance as defined by the New York State Insurance Department. The expected benefit ratio for this policy is 55.0 percent. This ratio is the portion of future premiums which the company expects to return as benefits, when averaged over all the people with this policy.

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