High Limit Disability Buy-Sell


Most privately held businesses with multiple owners have (or should have) shareholder or partnership agreements stipulating what happens in the event of death or disability of a partner/shareholder (“owner”).


Usually, in such an event the remaining owners want to buy out the shares of the disabled or deceased owner.


The funding of this buy-out may be problematic unless appropriate insurance is in place. Consequently life and disability insurance plans are often purchased to provide at least partial funding.


The challenge with disability buy-sell insurance is that traditional markets underwrite this business quite conservatively and offer insurance amounts that are insufficient in many situations.


High Limit Disability Business Overhead Expense


There are a variety of situations where a Lloyd’s business overhead expense solution is an excellent supplement or alternative to traditional business overhead expense coverage.


High Limit Top-Up:


The maximum amount of coverage available in the regular market is $30,000/month. There are many professionals and business owners with fixed overhead expenses that exceed that amount and want additional BOE coverage. We can issue up to $100,000/month, with appropriate justification of the coverage.


Medical Declines:


Approximately 10% to 15% of regular market BOE applications are declined, the majority for medical reasons. We are able to offer coverage to most of those that have been declined by the regular market, as long as they are actively at work and dealing responsibly with their medical condition.


Older Ages:


The maximum issue age is usually 60 for traditional business and professional overhead expense plans. Many older professionals and business owners require this coverage. Underwriters will consider providing for higher ages.


High Limit Disability Keyman


There are many situations where businesses need to protect themselves against the adverse financial impact of the long term disability of a key employee. The amounts of key person coverage available in the regular market are very limited.


When there is a need for key person life insurance, there is almost always also a need for key person disability insurance.


High Limit Disability Loan Protection


Lending institutions many times require the borrower to secure a disability insurance policy in the event the individual paying the loan becomes disabled and can no longer make payments. Due to the potential risk of disability, numerous institutions are hesitant to provide large loans to individuals without coverage in place. We can offer a solution that will satisfy the bank requirements with the Bank Loan Guarantee insurance plan. The plan is fitted to the terms of the agreement with a declining benefit, and the premium can be added to the loan.


Many business ventures require a high capital input to generate large amounts of revenue. Securing a loan can provide a business the leverage it needs to turn a large profit. Due to the potential risk of disability, numerous institutions are hesitant to provide large loans to individuals in fear the loan will not be paid back.