What is Disability Buy-Sell Insurance?

Shawn Plummer

CEO, The Annuity Expert

Disability buy-sell insurance is a specialized type of insurance designed to protect businesses if an owner or key partner becomes disabled. This insurance plays a crucial role in ensuring the stability and continuity of the business under such circumstances.

Purpose of Disability Buy-Sell Insurance

  1. Protects Business Stability: Ensures the business can continue operating smoothly if an owner becomes sick or injured.
  2. Financial Safeguard: Provides the financial means for the business or remaining partners to buy out the disabled owner’s share.

Addressing Potential Business Challenges

  • Impact of Sudden Disability: The sudden disability of a partner can be more disruptive than death, as it may lead to complex situations where the disabled partner is still involved in the business.
  • Management Concerns: A disabled partner may become a burden, especially if they cannot contribute productively but still influence business decisions and draw a salary.
  • Solution for Harmony: Disability buy-sell insurance allows the healthy partner(s) to buy out the disabled partner’s share, thereby preserving the business’s operations and harmony among the owners.

Key Benefits of Disability Buy-Sell Insurance

  • Smooth Transition: A smooth financial and operational transition is facilitated if a business partner becomes disabled.
  • Clear Exit Strategy: Provides a predefined exit strategy and financial arrangement for disabled partners.
  • Preservation of Business Value: Helps maintain the value and integrity of the business during challenging times.

Recommendation: Petersen International for High Net Worth Clients

Petersen International is recommended for disability buy-sell insurance, particularly for high-net-worth clients:

  • Coverage for Large Salaries: They specialize in covering large salaries, often necessary for high-net-worth individuals.
  • Customizable Policies: Offers policies that can be tailored to larger businesses’ specific needs and financial structures.
  • Expertise in High Net Worth Coverage: Their experience and focus on high net-worth clients make them suitable for businesses with significant financial stakes.


Disability buy-sell insurance is essential for businesses, offering protection and financial stability in case an owner becomes disabled. It provides a practical solution for maintaining business operations and avoiding potential conflicts. For high-net-worth businesses, Petersen International offers tailored solutions that cater to their specific needs and financial capacities.

Contact us today

Request A Quote

Get help or a quote from a licensed financial professional. This service is free of charge.

Contact Us

Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

Scroll to Top