What Are Buy-In and Buy-Out Agreements?
In the Buy/Sell Disability Insurance portfolio we have plans to fit the customary Buy/Sell situations and the Buy/Sell situations of Buy-In and Buy-Out.
Buy-In Agreement
This type of an agreement is typically between a person who wants to own a part of a firm and an owner who is willing to sell a part of the firm to an acceptable partner. The contract will set the price and the terms of acquisition, which is usually an installment purchase.
The peril to the Buyer, in the event of a disability, is inability to meet the payment schedule of the Agreement and thus forfeiting the investment of payments made up to the time of the buyers disability.
The solution is the Executive 400 Business Disability Buy-In Plan that will make the payments to complete the obligations created by the Buy-In Agreement.
Insured Person – The Buyer
Policy Owner – The Buyer or The Seller
Beneficiary – Either the Buyer or the Seller