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Disability Buy/Sell Insurance


How it Works

A disability buy/sell insurance policy is a conditionally renewable business policy. The buy/sell disability insurance policy is used to provide the necessary funds to one or more business owners to purchase the shares of the disabled partner or shareholder. The disability buy/sell insurance policy provides the funds used to complete the buy-out, while guaranteeing a fair price to the disabled shareholder or partner. 

The disability buy/sell insurance policy is co-ordinated with a life insurance buy/sell insurance policy. The combination of life and disability insurance policies are used to fund a partner buy-out, in the event of total disability or death. 

Features and Benefits Options:

    1. Option to receive the funds after the date you become disabled-from 12, 18, 24 or 36 months.

    2. Select how you would like to receive the funds-monthly for a period of 24, 36 or 60 months; a one-time lump sum; or a combination of monthly and lump sum payments.

    3. Waiver of premium - After a period of time, 90 days with most policies, the insurance company will refund the premium you've paid for this period and waive the premiums while you are disabled.

    4. Legal/accounting fee - Reimburse independent legal and accounting fees incurred in performing the terms of the buy-sell agreement up to $5,000.

    5. Transplant surgery - If you become disabled from a surgical procedure in which you are the donor of a body part transplanted to another person, you will be covered. Insurance companies require that your policy has been in force for a period of time, 6 months or longer.

    6. Survivorship - If your benefit payments are monthly and you die while benefits are payable, insurance companies will pay a lump-sum benefit.

    7. Future purchase option - Provides the opportunity to purchase additional insurance even if the insured's health has changed.

    8. Conversion - Under certain situations, you may apply to convert your policy to a disability insurance policy or business overhead expense policy without medical evidence.

    9. Transfer of insurability - You may apply for a similar policy with a new owner if your policy terminates because you stop working full time in the business without having to provide medical evidence.

    10. Your policy will automatically renew each time you pay your premium until you turn age 65.


Disability insurance is a highly specialized field that requires guidance and advice of a knowledgeable insurance broker.

There are only a few companies offering individual disability insurance in Canada. Shopping for disability insurance will not result in savings due to lack of competition.

Disability insurance is a complex product, let Stone-Hedge Financial Group Inc. customize a disability insurance policy to suit your needs and budget.


Contact Us for a Buy/Sell Disability Insurance Quote


The information provided on this web site is intended for general information only. It should not be construed as legal, accounting, tax or specific insurance and investment advice. Clients should consult a professional advisor concerning their situations and any specific insurance and investment matters. While reasonable steps have been taken to ensure that this information was accurate as of the date hereof, Stone-Hedge Financial Group Inc. and its affiliates make no representation or warranty as to the accuracy of this information and assume no responsibility for reliance upon it.

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