Disability Buy-Out Coverage
Disability Buy-Out Coverage funds a disability buy-out agreement between business owners, if a total disability gradually forces one of the owners to stop working. It is designed to reimburse the buyers of a business for the cost of purchasing the disabled Insured's interest in the business.

Conditionally Renewable with Guaranteed Premiums <
Once you enter into a Disability Buy-Out Contract with Blauch and Associates, the contract cannot be changed unilaterally by the Company. The policy can be renewed on each policy anniversary up to age 65 provided the Insured is working full-time in the business and the Insured owns some, but not more than 90%, of the business and benefits to reimburse buy-out expenses have not been paid under the policy.

Beginning Date 
This is the date on which benefits become payable after the Insured becomes totally disabled. Blauch and Associates offers Beginning Dates of 366 days or 731 days. The Insured does not have to be continuously disabled to qualify for the Beginning Date.

Total Disability 
The Insured is totally disabled when unable to perform the principal duties of the regular occupation and not working in any capacity in the business.

Regular Occupation 
Coverage is provided for the Insured's occupation in the business at the time the Insured becomes disabled. If the Insured is regularly engaged in more than one occupation in the business, all of the occupations of the Insured in the business at the time the disability starts will be combined to be the regular occupation. Other occupations the Insured may have outside the business, if any, do not apply.

Buy-Out Benefit 
The contract provides a benefit to reimburse buy-out expense. Buy-out expense is the amount that has actually been paid to the Insured to purchase the Insured's ownership interest in the business, provided the amount is paid under the terms of a written buy-out agreement in effect on the Beginning Date and the amount has been determined using a generally recognized valuation method.

There are two types of buy-out agreements supported by Disability Buy-Out insurance, an Entity Purchase Plan and a Cross Purchase Plan. Both plans can be used for either a partnership or a corporation. And in both cases, all parties involved must agree to all the terms of the plan including how benefits will be paid upon disability of the Insured.

Death or Recovery from Disability 
If the buy-out agreement provides that the purchase of the Insured's ownership interest shall continue even though the Insured, after the Beginning Date, dies or recovers from total disability, the Benefit will be payable as though the Insured had continued to be totally disabled.

Waiver of Premium 

Premiums are waived which become due on the policy while the Insured is totally disabled if the total disability lasts for at least 90 consecutive days. If premiums are waived, the Company will refund that portion of a premium paid which applies to a period of total disability beyond the policy month in which the total disability began. If premiums are waived on a policy anniversary, an annual premium will be waived.

Change of Insured 
The Owner may change the Insured under the policy by paying the required costs and meeting any other conditions.

 
The policy described here refers to policy form RR.BUY.(0101), which may not be available in all states. In addition, depending on the state where the policy is purchased, policy features may vary from what is described here. 
Exclusions and limitations include pre-existing conditions. There will be no benefits for a disability or loss that results from an accident that occurred within two years before the Date of Issue; or results from a sickness that existed within two years before the Date of Issue; or if the accident or sickness was not disclosed or was misrepresented in the application. 
A sickness is considered to have existed if symptoms were present that would have caused a prudent person to seek diagnosis, care or treatment; or if medical advice or treatment was recommended or received from a health care practitioner. 
There will be no benefits for a disability or loss that is caused or contributed to by an act or incident of war, declared or undeclared, the suspension, revocation or surrender of a professional or occupational license or certificate or the commission of or attempt to commit a felony. There will be no benefits for a disability or loss for any period the Insured is incarcerated or is excluded from coverage by an Agreement of Limitation of Coverage.