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Disability Insurance

Disability Insurance for Business


You have been recently diagnosed with a tumor that needs immediate treatment to which recovery is not certain. Your health is top priority however there are still important business decision needed to be made. Your expertise and client relationships are still an integral part to the business and your partners.

A cash flow crisis arises, what do your partners do?

  • Remove you from payroll? – How will you survive without income?
  • Remove or cut other employees salaries? – The business is already short staffed in your absence.
  • Get a buy out from partners and restructure? – A bank loan may not be approved and you won’t sell your shares a reduced amount.

Buy / Sell Plan

How does the Buy/Sell Plan work?
  • A Buy/Sell Plan (disability insurance policy) gives a lump sum payment at either 365 or 720 days of total disability.
  • The insured amount is used according to the plans provisions for the business or business owners to purchase the shares or ownership interests of a totally disabled shareholder or partner.

How much coverage is available?

  • Issue limits range from $50,000 to a maximum of $1,000,000 per insured owner
  • The actual issue limit is based on the financial statements of the business provided at the time of application for insurance.

What are the advantages?

  • A fixed expense for protection to costly and unproductive drain to the business
  • Suppliers and Creditors may be reassured
  • Can be used to fund the disability buy/sell agreement in whole or in part
  • Helps reduce potential hostility among shareholders or partners
Altamira Financial Solutions