See how a disabled owner's buy-out is funded, and how key-person cover replaces a vital employee: waiting periods, benefit periods, lump-sum vs instalments.
Buy / sell funding
Cover can run to about $1M, some contracts to $2M.
Coverage funds the buyout of this owner's interest.
Long, to let the owner recover before the sale is forced.
Balance paid in equal monthly instalments (up to 60 mo).
Key employee cover
Usually up to 100% of salary, capped near $15,000 / month.
Kept short; the business feels the loss quickly.
Usually no more than 12 months of monthly benefit.
Educational illustration of standard Canadian insurance concepts. Figures are illustrative, not an insurer’s rates.
Illustration only, not a quote or advice. Figures are simplified for education and do not
reflect any specific insurer's rates. Consult a licensed advisor.