In the event an owner is disabled and unable to continue to run the business, what disability insurance option is available?
A)Disability buy-sell insurance
B)Disability reducing term insurance
C)Disability rider insurance
D)Business overhead expense

Question

Quizplus · Accepted Answer

In the event an owner is disabled and unable to continue to run the business, the disability buy-sell insurance is available to the owner. Under this plan, there is an elimination period and then benefits are made to the business for the purpose of buying out the interest of the owner or partner that is disabled. It is important to note that once a buyout begins, it cannot be stopped. Benefits can be paid to the business in a lump sum or through monthly payments not to exceed 5 years.

In the Event an Owner Is Disabled and Unable to Continue