It funds the purchase of an owner’s shares if they become disabled and can’t come back to the business, once they’ve been disabled for the period your agreement sets, often one or two years. Depending on the plan and your agreement, the buy-out is paid as a lump sum, in instalments, or both. The owner gets fair value for their shares, and the remaining owners keep the business.
What is covered under buy-sell disability insurance?
Reviewed by Garrett Agencies Ltd., October 2026. How we write
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More about buy-sell insurance
Funds an agreement between co-owners, so the business and each owner’s family are protected if one dies or becomes disabled.
Also about: Business-owned disability insurance
More questions about buy-sell insurance
- How does buy-sell insurance work in Canada?
- How is the value of a business partner’s share determined for buy-sell insurance?
- Are premiums for buy-sell insurance tax-deductible in Canada?
- What are the benefits of having buy-sell insurance for Canadian businesses?
- Can buy-sell insurance cover multiple partners in a Canadian business?
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