Post by Barry, Evans, Josephs, and Snipes (BEJS)

Out of every 100 privately owned businesses, 35-45 will have a formalized buy-sell agreement in place for succession planning, and only 15-25 will have life insurance funding in place for buyout purposes. Even more shocking is that only 5-10 will have included disability buyout insurance in their planning. This is one of the most overlooked areas in business succession planning despite it being several times more likely to occur. Structured differently than disability income insurance, the buyout policy allows a disabled partner's equity to be repurchased after a predetermined amount of time at a predetermined value. All parties are satisfied - the disabled partner trades illiquid business interests for cash and the business is able to move on. Most plans account for death. Far fewer account for what’s more likely.