If you own a business, you know how it feels to live for that business. You also rely on it to support you and your family. So, what would happen if you suddenly became ill or injured and could no longer work? You need to think about the what-ifs.
The fact is, your loved ones may not have the skills or desire to run the business, and your co-owners may not welcome the idea of an unintended partner. Also, imagine the scenario where it is one of your co-owners who becomes permanently disabled and you’re faced with those choices.
That’s where a disability buy-sell plan comes in to play. This is an agreement among owners to buy out a co-owner’s share of the business in the event of a permanent disability. Here are four options for funding that agreement: