What type of policy would be used to buy out a permanently disabled partner who can no longer contribute to the partnership?

A Business Disability Buyout Policy is specifically designed to address situations where a business partner becomes permanently disabled and is unable to continue their role in the partnership. This type of policy provides the necessary funds to the remaining partners to buy out the disabled partner's share of the business, ensuring that the partnership can continue operating without financial strain or disruption.

This buyout mechanism is crucial because it not only helps maintain the stability and continuity of the business but also protects the interests of all partners involved. The policy establishes a clear financial plan for buyouts, enabling partners to avoid potential conflicts and providing financial security.

Other types of policies listed, such as the Business Overhead Expense Policy, are focused on covering operating expenses during a disability rather than facilitating a buyout. An Individual Disability Income Policy provides income replacement to an individual in the event of a disability but does not address partnership-related financial obligations. Lastly, Accidental Death and Dismemberment Policies provide benefits specifically for accidental injuries and do not cover the scenarios of long-term disability in a partnership context.