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disability buyout insurance

Disability buyout insurance refers to a disability insurance policy designed to buy out a disabled business owner or partner.

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Additional Information

The proceeds from the disability policy are used to fund an agreement designed to provide the company owners with the money they need to purchase a disabled owner's or partner's interest in the company or partnership at a mutually agreeable price. A disability buyout insurance plan is specifically designed to fund a buy-sell agreement between the owners or between the owners and the company.