Disability Buyout is one of the most underutilized physician disability insurance contracts in the marketplace. If you are in a partnership with another person and either of you becomes disabled, what happens to the practice? What happens to the profits? Does your overall agreement speak to profits being shared? If so, you could still be responsible to pay out a portion of the profits to a partner who is not working.
What if you are disabled? Do you want to be compensated for your portion of the value of the practice, or does your partner just get the practice? Where does one get the money to buy out either you or your partner? A Disability Buyout policy pays a lump sum payment in order to buy out a disabled partner and insure value equity between the partners.