Disability Buy-out Insurance
Definition of "Disability buy-out insurance"
Buy-sell agreements found in partnerships, sole proprietorships, and close corporations. Either the business entity or the surviving members of the business agree to buy out the interest of a disabled member according to a predetermined formula funded through insurance. Disability buy-out insurance can be more important to a business than death buy-out insurance because the chances of becoming disabled are 7 to 10 times greater than death, depending on the age of the individual. The mechanisms available for the disability buy-out are the same as those found under business life and health insurance.
Popular Insurance Terms
Model state law of the NAIC that stipulates that the contract owner must receive annual reports concerning the annuity unit values, the manner in which the variable benefits are calculated, ...
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Individual (s) entitled to receive the income generated by the trust. ...
Plan that provides protection in the event of legal actions resulting from charges of harassment, discrimination, wrongful termination of employment, defamation, and invasion of privacy. ...
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basic feature of the social security act under which benefits paid are associated with the employee's earnings that have been taxed during the employment period. ...
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