Buy-Sell Disability Insurance
Many dentists enjoy the benefits of having one or several partners to share the workload and the successes of a thriving practice. A Buy-Sell Agreement is designed to leave no question as to what will happen to a deceased or disabled partner’s share of the business. All partners agree that if one should die or need to withdraw from the partnership, the remaining partner(s) will purchase his or her interest in the practice.
There are two types of Buy-Sell Agreements:
An Entity Plan is an agreement with the partnership in which the remaining partnership purchases the deceased or withdrawing partner’s interest.
A Cross-purchase Plan is an agreement between the owners in which the remaining partner(s) purchase the deceased or withdrawing partner’s interest.