Leveraged Buyouts For full-time business people who own at least 10% of a business with 2 to 5 co-owners.

Buy-Sell Plus can be used to reimburse funds used to buy-out a disabled owner's share of the business – when the owner cannot perform substantial duties and is not working elsewhere. Buy-Sell Plus cannot be cancelled by the insurance company and can be renewed to age 63. However, it can be cancelled by the client.

No premiums are required after 90 days of disability. The plan can convert to an income replacement policy or transfer coverage to a new business without medical evidence at original age rates. It also allows owner to purchase additional insurance. Added benefits include reimbursement up to $5000 for legal accounting expenses incurred while executing the buy-sell agreement. A lump sum will be paid if death occurs while receiving monthly installments

A Disability Buy-Sell Agreement guarantees that disabled owner's interest can be purchased at a definite price with minimal disruption to cash flow and without family members involved in the business. It also prevents competitors from buying disabled owners shares, guarantees a market for ownership interest at a pre-arranged price and business interest is converted to a cash asset with freedom from risk of future business losses

Buy-sell funding

A key component of an integrated financial plan is business succession because changes in ownership may create financial obligations for the remaining owners, and can have income tax implications. Life insurance is generally an efficient way to fund the obligation that results from a buy/sell agreement when a shareholder or partner dies. There is no “right way” but an important consideration is whether to fund the buy/sell arrangement with “corporate owned” or “personally owned” life insurance, which could have future tax liabilities.

Buy-Sell Plus, cannot be cancelled by the insurance company, but can be by the client.