BDI Buy-Sell The Untapped Market

Buy-Sell the Untapped Market
Because death is certain, business owners have readily accepted the concept of funding the firms Buy-Sell Agreement against the contingency of death with adequate amounts of Life Insurance.
Becoming disabled creates financial and problems much worse than the consequences of death. The Buy-Sell Agreement is typically silent as to what will happen in the event of the disability of an active business owner. The Advisor faces the accusation of malpractice if a recommendation to cover the contingency of disability has not been made to the Insured.
With death, the matter of what to do is instantly determined, but FEW PEOPLE HAVE THE LUXURY OF DROPPING DEAD — THEY SUFFER TO DEATH and during the suffering period, bad financial conditions manifest themselves into full blown catastrophes. The disabled person usually demands full pay and all benefits during the Period of disability even though he/she is not a producer.
The Principal who is the victim of a disability does not want to immediately be bought out of the firm instantly when disability occurs. The Buy-Sell usually contemplates a period of time during which the disabled principle has a chance to recover and return to full time duties. One year is the usual choice of advisors as a period of time that is reasonable to the disabled Principal and to the firm.
The disabled principal MUST SELL and the firm or the other Principal(s) MUST BUY at the price determined by the terms of the agreement. To protect the firm from an endless crippled condition the barrier to the firm’s progress must be removed. The Disabled Principal must be relieved of ownership and duties so a permanent solution to the matter can be achieved and the firm can adjust to its new permanent structure.