Disability Buy-Sell Agreements: Best Practices
The most common of which is a lump sum payout after a 12 month elimination. Saving the fi rm is a buy/sell agreement appropriately funded by disability insurance. Intelligently planned business buy/sell agreements anticipate the contingencies of the voluntary. Buy sell disability policies are typically designed to mirror the requirements of the buy sell agreement. (1) disability buyout versus disability income, (2) the definition of disability, and (3) valuation—not just how much, but when.
