Congratulations! All of your hard work has been recognized and you have been asked to become a partner. For most of you, this will require either a direct payment to your practice or a reduction in income as you buy in. What would happen to you if you became too sick or injured to work? What would happen to your buy in process?
When an individual is invited to become a partner in a business or a professional practice (such as a physician, law or dental practice), there is typically a period of time involving the buying in. The person buying in often times gives up a percentage of income in exchange for an equity position. If the person buying into the practice becomes disabled during the buying in period, problems can develop in the completion of the buy in agreement. The new, to be partner, is not yet a partner. Therefore, a traditional buy sell plan will not work in covering this risk. A specialty plan know as Buy In Disability Insurance can fulfill the financial obligations stated in the contract, thereby safeguarding the completion of partnership.
There are common solutions for the following:
•· Limits as high as $50,000
•· Medical History
•· Risky Avocations
•· Older Ages or Age Differences Between Partners
•· Difficult to Insure Occupations
•· Family Owned Businesses
•· International Relationships
•· Reducing Benefits From Traditional Carriers