DI Tip Of The Week
Buy/Sell Disability Insurance
Buy/Sell Disability Insurance is important coverage for many business owners and partnerships. It can pay monthly or lump sum proceeds to business owners who need to buy out a permanently disabled partner. Most clients will understand the value in Buy/Sell – making it a fairly straight forward sale.
When pitching Buy/Sell, don’t forget to discuss waiting periods. Buy/Sell policies typically have a 12+ month elimination period – meaning benefits will not be available until the partner has been permanently disabled for one year. Your client will need to have savings or other assets available to keep the business running during the waiting period. When Buy/Sell coverage tag teams with Key Person Disability Insurance, your client will have the necessary funds to keep the business running. This DI dynamic duo works hand-in-hand to protect your client’s business and their paycheck.
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