Common Uses

Buy-Sell Failure to Survive Insurance would be appropriate for clients when...

  • Coverage is needed immediately (24-48 hour underwriting)
  • Insurable interests need to remain confidential
  • Completing a medical exam would be an issue
  • Proposed insured is temporarily out of the country
  • Proposed insured must travel to war zones
  • Coverage is needed for a short period of time
  • Health issues are a concern
  • Issue limits are a problem

Buy-Sell Failure to Survive

Any business with two or more owners should seriously consider having a buy-sell agreement in place.  Once the buy-sell agreement has been established then there is the important need to provide a mechanism for funding the transfer of ownership.  It is the unexpected situation of a pre-mature death or disability which normally is the cause for alarm.  The firm’s assets are at risk and it is the job of the Buy-Sell Failure to Survive Plan to provide a solution to this situation.

Take the case of...

Mr. K, a 63 year old business owner. Three years ago he was diagnosed with cancer. Thankfully with chemotherapy he was able to recover and resume a normal life, but now he could not get approved for buy-sell insurance because of his medical history. We were able to issue him a $3,000,000 Buy-Sell Asset Protection policy with a cancer exclusion.

Policy / Underwriting Information

•    Term of insurance is from 90 days to 12 months
•    Renewals are considered if extended coverage is needed
•    A copy of the buy-sell agreement and company financials are required at underwriting
•    Benefit amount will not exceed 100% of the ownership value