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BUY SELL FUNDING
Most small practices will
purchase life insurance to fund a buy-out in the event of a death, but few
practices consider this option to account for the possibility of a
disabling event. A Buy-Sell agreement is intended for practices with fewer than 10 shareholders and designed to fill a large gap in a practice's financial planning and protect the partner(s) in the event that a disability begins to affect the business.
By incorporating such a policy, a practice is able to compensate a disabled physician for his/her share in the practice. It is a very cost effective way to avoid substantial payments in the event that you or one of your partners becomes disabled.
| Maximum Buy Out Benefit |
Up to $1,000,000, depending on waiting period and payout mode. |
| Available Waiting Periods |
Benefits can be provided after 12, 18, or 24 months. |
| Available Payout Options |
Benefits can be provided as a lump sum benefit, monthly payments or a combination of both modes. |
| Taxation of Premiums and Benefits |
Premiums are non-deductible. Benefits are tax free. |
| Definition of Total Disability |
Inability to perform your own occupation and not working in another occupation. |
| Partial Disability |
Not applicable. |
| Future Increase Opportunities |
Not applicable. |
| Underwriting Requirements |
Medical exam, application and financials. |
| Policy Rates |
Rates vary based on such factors as age, occupation, smoking status and benefit amount. |
| Premium Discount |
10% Association Discount. |
| Maximum Age Availability |
Age 60. |
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