Disability & Long-Term CareQuestion 649 of 716
A disability buy-sell policy provides funds to:
a.Buy out a disabled owner's business interest under a buy-sell agreement
b.Replace the business's lost profits during the entire period that the owner remains totally disabled
c.Pay the disabled owner's personal medical bills
d.Pay the business's overhead expenses
Explanation
A disability buy-sell funds the purchase of a disabled owner's share by the remaining owners or the business, per the buy-sell agreement. Medical bills, lost profits, and overhead are addressed by other coverages.
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Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)