Tim Fuller

President, SRS Inc.

Tim Fuller is President of SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency) that has connected independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners for more than 50 years. Tim and the SRS team specialize in impaired-risk underwriting, advanced case design, and helping advisors place the cases other IMOs turn away.

Life InsuranceImpaired RiskLong-Term CareDisability IncomeAdvanced MarketsUnderwriting

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Case Placement: Standard Rating on a $500K Term Policy With Parkinson’s Disease

September 23, 2026June 24, 2022 by Tim Fuller

Active older man hiking a mountain trail, representing impaired risk life insurance clients living fully

A Parkinson’s diagnosis usually means an automatic table rating, if a carrier will offer at all. This case came back Standard. Here’s the underwriting credit stack that made the difference.

Key takeaways

Parkinson’s affects about one million people in the U.S.; a well-controlled case looks very different to the right carrier than the diagnosis code alone.
This client’s low-dose medication with no symptom progression was the key clinical detail that mattered.
A single diagnosis doesn’t have to define the final offer when the rest of the risk profile is favorable.

A Parkinson’s diagnosis at Table 2 moved all the way to Standard once underwriting credits — controlled blood pressure, good cholesterol ratio, no tobacco use — were stacked on top of a well-controlled case.

The situation

Parkinson’s disease affects about one million people in the United States and ten million worldwide. Its cause remains largely unknown, and while there’s no cure, treatment options — including medications and surgery — can manage symptoms effectively for many patients. That clinical reality matters for underwriting, because a well-controlled case looks very different to the right carrier than a diagnosis code alone would suggest.

Our client was a 65-year-old female, a non-tobacco user, applying for $500,000 of term coverage. She had been diagnosed with Parkinson’s disease two years earlier and was managing it on a low dose of Sinemet daily, with no progression of symptoms. The initial underwriting assessment came back at Table 2.

Why this case improved

One of our A+ carriers takes a responsibly aggressive approach to underwriting Parkinson’s disease, willing to offer favorably on well-controlled cases that show other favorable risk factors. This client had several: controlled blood pressure, a good cholesterol ratio, routine physicals and preventative screenings, good family history, and no tobacco use in the past 10 years.

The result

After applying those credits, the underwriting offer moved all the way from a Table 2 to Standard — the best possible outcome for this client’s profile, and proof that a Parkinson’s diagnosis alone doesn’t have to define the offer when the rest of the clinical picture is strong.

Contact our underwriting team today to see how we can help you place your next impaired-risk case.

Frequently asked questions

Can someone with Parkinson’s disease still qualify for Standard life insurance rates?

In some cases, yes. A well-controlled diagnosis with no symptom progression, combined with other favorable risk factors like controlled blood pressure, good cholesterol, and no tobacco use, can move an offer from an initial table rating to Standard with the right carrier.

Why does the carrier matter so much for a Parkinson’s case?

Carriers vary widely in how aggressively they underwrite Parkinson’s disease. Some default to a table rating based on the diagnosis alone, while others, like the carrier in this case, take a more responsibly aggressive approach and give credit for a well-controlled clinical picture.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-23

Tim Fuller

President, SRS Inc.

Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency) connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners — with the impaired-risk and complex-case expertise to place business other IMOs and BGAs turn away.

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Protecting Clients’ Summer Adventures With Short-Term Income Protection

September 23, 2026June 22, 2022 by Tim Fuller

Professional working confidently at her desk, representing disability income protection

Mountain climbing, rafting, boating — the same hobbies that make summer great are also the ones most likely to land a client in the hospital with a “boo-boo” that keeps them out of work. Here’s an affordable way to make sure a summer accident doesn’t turn into a summer of missed mortgage payments.

Key takeaways

Short-term income protection is built for weeks-to-months absences, not just long-term disabilities.
Plans range from roughly 6 months up to 2 years of benefit, sized to the client’s income.
This coverage can’t be bought after an accident already happened — timing the conversation before summer matters.

A self-employed carpenter earning $60,000 a year can qualify for a meaningful tax-free monthly benefit for a modest premium — coverage that has to be in place before the accident happens.

The risk clients don’t think about

Clients heading into summer are focused on enjoying the season, not on the injury risk that comes with their favorite outdoor hobbies. Accidents happen, though, and short-term income protection is built exactly for this kind of situation — an unexpected injury that keeps someone out of work for weeks or months, not necessarily years.

How the coverage works

If a client gets hurt, this kind of coverage provides tax-free income every month while they recover, with plan options ranging from shorter-term benefits lasting around 6 months up to plans covering up to 2 years. Monthly benefit amounts are based on the client’s income, up to a maximum benefit, and are typically enough to keep the mortgage paid, the lights on, and the family fed while the client recovers.

As an illustrative example, a self-employed 35-year-old carpenter earning $60,000 a year might qualify for a meaningful tax-free monthly benefit for a modest monthly premium — inexpensive enough that cost is rarely the reason a client goes without it.

Why the timing matters

If a client gets sick or injured and ends up in the hospital without an income protection plan already in place, it’s too late to buy the coverage after the fact. The best time to have this conversation is before summer activity picks up, not after an accident happens.

Contact us today to find out exactly how affordable income protection can be, and how to fit it to any client’s specific needs and budget.

Frequently asked questions

What does short-term income protection actually cover?

It replaces a portion of a client’s income, tax-free, if they’re injured or become ill and can’t work. Plans range from shorter benefit periods of around 6 months up to 2 years, with monthly benefits based on the client’s income.

Is this coverage affordable for clients on a tight budget?

Often, yes. Premiums are typically modest relative to the monthly benefit provided, making it accessible for a wide range of income levels, including self-employed clients who don’t have any employer-provided disability coverage to fall back on.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-23

Tim Fuller

President, SRS Inc.

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Underwriting Seizures and Epilepsy: Two Case Studies From Preferred to Substandard

September 23, 2026June 10, 2022 by Tim Fuller

Epilepsy and seizure history can range from a childhood diagnosis that resolved decades ago to an ongoing condition managed with daily medication — and the underwriting outcome depends heavily on which story a case actually tells. Here are two real cases that landed on opposite ends of the offer spectrum.

Key takeaways

Underwriting outcomes for epilepsy depend on seizure history, control, and time since the last episode — not the label itself.
Decades of seizure-free history since medication stopped can produce a strong offer.
The same diagnosis can land anywhere on the underwriting spectrum depending on how the case is actually documented.

A childhood epilepsy diagnosis resolved by age 20 came back Preferred; an ongoing case with five seizures a year on two medications landed at the opposite end of the spectrum.

What underwriters are actually evaluating

Epilepsy is a disorder characterized by recurring seizures, typically diagnosed after two or more seizures. Seizures result from disturbances in the brain’s electrical activity, with causes ranging from genetics to traumatic brain injury, stroke, or brain tumors — and when no specific cause can be identified, the epilepsy is termed idiopathic. Seizures themselves fall into two major groups, focal and generalized, distinguished by how and where they begin in the brain. What matters most for underwriting isn’t the label, though — it’s the seizure history, control, and time since the last episode.

Case one: childhood epilepsy, resolved by age 20

A 52-year-old male had a history of childhood idiopathic epilepsy with mild absence-type seizures that started at age eight. The condition was controlled with medication, which was stopped at age 20, and there had been no seizures since. This case came back with a Preferred offer — a strong outcome reflecting decades of seizure-free history since medication was discontinued.

Case two: ongoing seizures managed with medication

A 42-year-old male began having complex seizures at age 26. His MRI was negative, and for the past five years he had been maintained on two medications, averaging five seizures per year. He does not drink alcohol. This case came back with a Low Substandard offer, reflecting the ongoing, active nature of his seizure history compared to the first case’s decades of remission.

The takeaway

These two cases show how wide the range of outcomes can be for seizure and epilepsy histories — from Preferred to Substandard — depending on how long ago seizures occurred, how well they’re controlled, and how the full clinical picture is presented to the right carrier.

Call our life underwriting team to discuss the specific details of your client’s seizure or epilepsy history. Let’s work together to get the offer you need.

Frequently asked questions

Can someone with a history of epilepsy get a Preferred life insurance rate?

Yes, particularly when the seizures were tied to a childhood diagnosis that resolved years or decades earlier with no recurrence after medication was stopped, as in one of the cases above.

How does an active seizure history affect the underwriting offer?

Ongoing seizures, even when well-managed with medication, typically result in a substandard rating rather than Preferred or Standard, with the specific offer depending on seizure frequency, medication stability, and other clinical factors.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-23

Tim Fuller

President, SRS Inc.

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Case Placement: Standard Rates on $3 Million After Prostate Cancer

September 23, 2026June 3, 2022 by Tim Fuller

A cancer diagnosis on an application doesn’t automatically mean a decline or a heavy rating. Here’s how one client qualified for Standard rates on $3 million of coverage six years after a prostate cancer diagnosis.

Key takeaways

A cancer diagnosis on an application doesn’t automatically mean a decline or a heavy table rating.
Time since treatment, Gleason score, and a clean follow-up PSA all factor into the underwriting outcome.
About one in nine men will be diagnosed with prostate cancer, but most cases are slow-growing and highly treatable.

Six years after a prostate cancer diagnosis, an immeasurable PSA and a favorable Gleason score supported Standard rates on $3 million of coverage.

Understanding the risk profile

Prostate cancer occurs when cells in the prostate gland grow out of control. Some cases grow and spread quickly, but most grow slowly, and there are often no early symptoms. Other than skin cancer, it’s the most common cancer in American men — about one in nine men will be diagnosed with it during his lifetime, but only one in 41 will die of the disease, and the average age at diagnosis is around 66. Treatment options include surgery, chemotherapy, cryotherapy, hormonal therapy, radiation, or in some cases, watchful waiting.

The case

Our client, Fred, was 56 years old and seeking $3 million of permanent coverage. Almost six years earlier, his internist had flagged a moderately elevated PSA, and a biopsy confirmed prostate cancer. After weighing his treatment options, Fred chose surgery. The cancer was present in two areas within one side of the prostate, and his Gleason score was 6.

Why this case qualified for Standard

At a follow-up exam two months before applying, Fred had no major symptoms, and his PSA was so low it was immeasurable. Having been treated years earlier for an early-stage, moderately aggressive cancer, with no signs of recurrence since, Fred’s clinical picture supported a Standard offer rather than a table rating.

The takeaway

Time since treatment, a favorable Gleason score, and a clean follow-up PSA can add up to a much better offer than clients — and sometimes advisors — expect for a prostate cancer history. Call our life underwriting team to discuss the specific details of your client’s cancer history and coverage needs.

Frequently asked questions

Can a client with a history of prostate cancer qualify for Standard life insurance rates?

Yes, in the right circumstances. Factors like time since treatment, the original Gleason score, and a clean follow-up PSA with no signs of recurrence can support a Standard offer even years after a cancer diagnosis.

What is a Gleason score, and why does it matter for underwriting?

The Gleason score measures how aggressive prostate cancer cells appear under a microscope, on a scale that informs both treatment decisions and underwriting risk assessment. A lower score, like the 6 in this case, generally reflects a less aggressive cancer.

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Reviewed by Tim Fuller on 2026-09-23

Tim Fuller

President, SRS Inc.

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Family History of Cancer Doesn’t Have to Cost Your Client the Best Rate Class

September 23, 2026May 20, 2022 by Tim Fuller

A client in excellent personal health can still get pushed out of the best rate classes over something they have no control over: a parent’s or sibling’s cancer diagnosis. Here’s why that doesn’t have to be the case.

Key takeaways

Most carriers limit rate-class eligibility based on family cancer history, regardless of the applicant’s own health.
Some carriers disregard opposite-gender family cancer history entirely.
It’s worth checking a second carrier before assuming a client’s best rate class is off the table.

A couple of A+ carriers don’t underwrite family cancer history at all — meaning a client can still qualify for Best Class rates elsewhere, even with an adverse family history.

Why family cancer history usually hurts an offer

Family history of cancer can have an adverse impact on underwriting decisions, even when a client’s own personal health history is excellent. Most carriers limit which rate classes a client is eligible for when there’s a family history of cancer, regardless of how healthy the applicant themselves is.

Where the opportunity is

That’s not universal, though. A couple of A+ carriers don’t underwrite family cancer history at all, which means a client with a family history of cancer can still qualify for the full range of Preferred rate classes, including Best Class, with those carriers. Other carriers go a step further and disregard family history of opposite-gender cancers entirely — for example, a male applicant whose mother died of uterine cancer, or a female applicant whose father died of prostate cancer, wouldn’t be penalized for that history at all with those carriers.

Why this is worth checking before you quote

If a client’s family cancer history is automatically knocking them out of your default carrier’s best rate class, it’s worth checking whether a different carrier would treat that same history very differently, or ignore it altogether.

Let our underwriting team help you get the best offers for clients with a family history of cancer. Call us today.

Frequently asked questions

Can a client with a family history of cancer still qualify for Best Class rates?

Yes, with the right carrier. Some A+ carriers don’t underwrite family cancer history at all, meaning it has no impact on rate class eligibility, including Best Class.

Does family history of cancer in the opposite-gender parent still count against an applicant?

With some carriers, no. Certain carriers disregard family history of opposite-gender cancers entirely, such as a male applicant’s mother’s uterine cancer or a female applicant’s father’s prostate cancer.

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Reviewed by Tim Fuller on 2026-09-23

Tim Fuller

President, SRS Inc.

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Not All High Cholesterol Cases Underwrite the Same Way

September 23, 2026May 13, 2022 by Tim Fuller

Doctor and patient reviewing a health chart on a tablet, representing health impairment underwriting

A total cholesterol reading in the 260-275 range sounds like an automatic underwriting problem. In two recent cases, it wasn’t. Here’s what carriers actually look at beyond the headline number.

Key takeaways

The cholesterol/HDL ratio is often more informative to underwriters than total cholesterol alone.
Some carriers now overlook total cholesterol levels between 150 and 300 entirely.
Two real cases with cholesterol in the 260-275 range both qualified for favorable rate classes.

A total cholesterol of 275 with a 6.0 cholesterol/HDL ratio still came back Preferred — because the ratio, not the headline number, is what matters most to today’s underwriters.

What the numbers actually mean

The liver produces all the cholesterol the body needs on its own; dietary cholesterol from food causes the liver to send even more into the bloodstream on top of that. High cholesterol can lead to fatty buildup in the arteries, raising the risk of heart disease and stroke. But “cholesterol” isn’t one number — HDL is the “good” cholesterol that helps clear out LDL, the “bad” cholesterol, and triglycerides are another form of fat in the blood. The cholesterol/HDL ratio, calculated by dividing total cholesterol by HDL, is often more informative than total cholesterol alone: the higher the HDL, the lower the ratio, and the better that looks to an underwriter.

Underwriting has gotten more nuanced

In the past, carriers looked strictly at total cholesterol levels when underwriting a case. Today, some carriers can overlook total cholesterol levels between 150 and 300 entirely, and Preferred classes are available with favorable cholesterol/HDL ratios even when the total cholesterol number looks high on paper.

Two cases that prove the point

One client had a total cholesterol of 275 with a cholesterol/HDL ratio of 6.0, and was taking a prescribed cholesterol medication. That case came back Preferred. A second client — a 52-year-old male, non-smoker, seeking $500,000 of term coverage — had a total cholesterol of 260 with a ratio of 7.0, also on medication. That case still came back Non-Smoker Plus, a strong outcome despite the elevated numbers.

The takeaway

A cholesterol number in the 260-300 range doesn’t automatically mean a lower rate class. The ratio, the medication response, and which carrier is underwriting the case all matter more than the total cholesterol figure alone. Our life underwriting department has a heart for finding the best possible outcomes on cholesterol cases. Give us a call.

Frequently asked questions

Can a client with high total cholesterol still get a Preferred rate?

Yes. Some carriers can overlook total cholesterol between 150 and 300, and Preferred classes are available with a favorable cholesterol/HDL ratio even when the total cholesterol number is elevated.

Why does the cholesterol/HDL ratio matter more than the total cholesterol number?

The ratio accounts for how much “good” HDL cholesterol a client has relative to their total cholesterol. A higher HDL lowers the ratio, which underwriters generally view more favorably than the total cholesterol number on its own.

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Reviewed by Tim Fuller on 2026-09-23

Tim Fuller

President, SRS Inc.

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Closing the Income Protection Gap for High Earners

September 23, 2026May 11, 2022 by Tim Fuller

Traditional disability carriers do a reasonable job replacing income for low- and middle-income earners, then quietly fall short the moment a client’s income crosses roughly $150,000. Here’s why that gap exists, and how to close it.

Key takeaways

Percentage-based caps and flat dollar maximums leave high earners underinsured relative to their actual lifestyle needs.
Stacking supplemental coverage on top of a traditional policy closes that gap without disrupting existing coverage.
The underlying need doesn’t change with income level — only the size of the gap does.

Traditional disability carriers meet the 65% income-replacement target for most earners, then consistently fall short the moment a client’s income crosses roughly $150,000.

Why carriers underinsure high earners

Modern disability insurers are cautious, sometimes overly so, about accidentally over-insuring their clients, and that caution shows up most with highly compensated clients. In the past, the income replacement percentage was often left to a particular carrier underwriter’s subjective judgment. More recently, the Council for Disability Awareness has pushed to modernize that approach with a statistical analysis suggesting clients need to replace at least 65% of their income to maintain their standard of living through a disability.

Where the gap shows up

Traditional carriers often meet, and sometimes surpass, that 65% target for low- and middle-income earners. They consistently fall short for clients earning more than $150,000, where percentage-based caps and flat dollar maximums leave a widening gap between what the policy pays and what the client actually needs to sustain their lifestyle.

The solution: stacking supplemental coverage

Whether a client earns a modest income or a high one, the underlying need is the same: adequate income protection to sustain their or their family’s lifestyle during a period of non-productivity or severely diminished cash flow from a short- or long-term disability. For higher earners, stacking additional income protection on top of what traditional carriers provide turns “maintaining their current lifestyle through a disability” from a hope into something they can actually count on.

Contact your dedicated DI specialist today to learn more about how you can offer your clients a complete income protection plan, regardless of how high their income runs.

Frequently asked questions

Why do high-income earners often end up underinsured for disability?

Traditional DI carriers cap benefits well below what’s needed to replace a high earner’s actual income, largely out of caution about over-insuring. That leaves a gap between what a policy pays and the roughly 65% income replacement clients generally need.

How can advisors close the income protection gap for high-income clients?

By stacking supplemental disability coverage on top of a traditional carrier’s policy, specifically designed to cover the portion of income that falls outside standard carrier caps.

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Reviewed by Tim Fuller on 2026-09-23

Tim Fuller

President, SRS Inc.

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Case Placement: Super Standard Non-Tobacco for a Client With Pre-Diabetes

September 23, 2026May 6, 2022 by Tim Fuller

A borderline blood sugar reading two years ago could easily read as a red flag on an application. For this client, it turned into a Super Standard Non-Tobacco offer, with a path to Preferred. Here’s how.

Key takeaways

Roughly one in three American adults has pre-diabetes, and it’s often reversible with lifestyle changes.
Carriers weigh the trajectory since diagnosis, not just the diagnosis itself.
Documented lifestyle changes after a pre-diabetes finding can materially improve the underwriting outcome.

A borderline blood sugar reading from two years ago came back Super Standard Non-Tobacco, with a path to Preferred, once diet and exercise changes were documented.

Understanding pre-diabetes

In the years before Type 2 diabetes develops, most people pass through an asymptomatic condition called pre-diabetes, marked by slightly elevated fasting blood sugar and sometimes other metabolic signals like high triglycerides, low HDL cholesterol, and excess abdominal fat. Roughly one in three American adults has pre-diabetes, and when it’s caught early, diet changes and weight loss can often head off the progression to full Type 2 diabetes entirely. One of our A+ carriers underwrites favorably on pre-diabetes cases that show a stable, well-controlled condition.

The case

Our client was a 55-year-old male, non-smoker, seeking personal coverage. He had a history of hypertension, well-controlled with medication and exercise. Two years earlier, a routine annual check-up revealed a blood sugar reading higher than normal. Follow-up testing confirmed pre-diabetes, and the client responded by adopting new diet and exercise habits.

Why this case improved

Since making those lifestyle changes, his condition had not progressed, putting him at lower risk of developing diabetes in the years ahead, provided he maintains the new habits. That trajectory, not just the diagnosis, is what carriers weigh most heavily in pre-diabetes cases.

The result

The potential underwriting outcome came back at Super Standard Non-Tobacco, with room for further improvement to Preferred through this carrier’s Healthy Lifestyle crediting program — a strong result for a case that started with a borderline blood sugar flag two years earlier.

Call our life underwriting team to discuss your client’s medical history today, and let’s work on your next success story.

Frequently asked questions

Can a client with pre-diabetes still qualify for a favorable life insurance rate?

Yes, particularly when the condition is stable and well-controlled through diet and exercise. In this case, a client with pre-diabetes and well-controlled hypertension qualified for Super Standard Non-Tobacco, with a path to Preferred.

What do underwriters look for in a pre-diabetes case?

They look at whether the condition has progressed since diagnosis, and whether the client has made lifestyle changes, like diet and exercise, that reduce the risk of developing full Type 2 diabetes. A stable or improving trajectory is viewed far more favorably than the diagnosis alone.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-23

Tim Fuller

President, SRS Inc.

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How DI Retirement Security (DIRS) Actually Works

September 23, 2026May 4, 2022 by Tim Fuller

Clients who’ve maxed out their disability insurance coverage often assume there’s nothing left to add — but their retirement contributions could still be left completely unfunded if they got sick or hurt. Here’s how DI Retirement Security (DIRS) closes that specific gap.

Key takeaways

Retirement contributions themselves aren’t required to qualify for DIRS.
Benefits are non-taxable when the client pays the premium themselves.
Elimination periods of 180 or 365 days and benefit periods to age 65 or 67 make DIRS flexible to a client’s existing DI structure.

DIRS pays up to 15% of earned income toward retirement contributions during a disability — available to anyone earning at least $76,000 in a qualifying occupation class, even on top of maxed-out individual DI.

Who qualifies

DIRS provides coverage that helps individuals continue making retirement contributions if they become unable to work due to disability. Since retirement contributions themselves aren’t required to qualify, any individual in a qualifying occupation class (Class A through 5A Select) earning at least $76,000 per year can apply. Coverage doesn’t diminish eligibility for regular individual DI insurance either — a client can qualify for DIRS even if they already carry a regular individual DI policy up to the maximum issue and participation limits.

How the benefit is structured

If the insured becomes disabled beyond the policy’s elimination period, DIRS pays into a trust rather than directly to the client, and at the end of the benefit period, trust assets are distributed to the insured per the trust agreement’s terms. Benefits are non-taxable if the insured pays the DIRS premium themselves; they’re taxable if an employer pays the premium and it isn’t treated as income to the employee.

Key features

Coverage provides a maximum benefit up to 15% of earned income, subject to a monthly benefit cap that’s periodically updated, with a minimum benefit requirement of $1,000 per month. Available elimination periods are 180 or 365 days, and benefit periods run to age 65 or 67, with “Your Occupation” periods of two years, five years, age 65, or age 67. Optional riders include Future Benefit Increase, Cost-of-Living Adjustment, and a Mental/Nervous Substance Abuse Disorder limitation.

If DIRS is written as a stand-alone policy with no other DI coverage applied for or in force, simplified underwriting guidelines can apply, making it a straightforward addition even for clients who haven’t gone through full DI underwriting.

For more information, including current benefit caps and case design for a specific client, contact your disability income insurance specialist today.

Frequently asked questions

Who is eligible for DI Retirement Security?

Any individual in a qualifying occupation class, Class A through 5A Select, earning at least $76,000 per year, regardless of whether they already carry a regular individual DI policy.

Are DIRS benefits taxable?

Benefits are non-taxable if the insured pays the premium themselves. They’re taxable if an employer pays the premium and it isn’t treated as income to the employee.

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Reviewed by Tim Fuller on 2026-09-23

Tim Fuller

President, SRS Inc.

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One-Way Disability Buy-Out: Succession Planning for Sole Business Owners

September 23, 2026April 27, 2022 by Tim Fuller

Most sole business owners have never thought through who would actually run their business if they became disabled tomorrow — and a spouse or relative stepping in is rarely the answer they’d choose if given the option. Here’s a coverage built specifically for that gap.

Key takeaways

Most sole owners haven’t decided who would run the business if they became disabled tomorrow.
A One-Way Buy-Out lets a key employee fund a disability buy-sell agreement rather than a family member stepping in.
The structure protects both sides: the disabled owner gets bought out, and the key employee gets the funding to do it.

Business owners are roughly eight times more likely to become disabled during their working years than to pass away — making disability, not death, the more probable trigger event to plan for.

The problem this solves

The average business owner isn’t prepared to have a spouse or relative step into the business if they become unable to work. Given the choice, most owners would rather pass responsibilities to someone who already understands the business and knows how to keep it profitable — typically a key employee, not a family member.

What a One-Way Buy-Out actually is

A disability buy-sell option called a One-Way Buy-Out gives a key employee the flexibility to purchase Disability Buy-Out (DBO) insurance, funding a buy-sell agreement between the employee and the sole owner of the business. The mechanics are similar to a life insurance policy funding a traditional buy-sell agreement, with one important difference: business owners are roughly eight times more likely to become disabled during their working years than to pass away, which makes disability, not death, the more probable trigger event to plan for.

Why this structure benefits both sides

The disabled business owner is protected because the key employee purchaser is obligated to buy out the owner’s interest. The key employee purchaser is protected because the policy provides both the opportunity and the funding to purchase the disabled owner’s interest, rather than having to come up with the money on short notice. Together, this prevents the sole owner from having to scramble to find a buyer while totally disabled, and it provides a smooth transition of ownership. Benefits are paid tax-free, though premiums are not deductible.

Contact your disability insurance specialist for more information on how to properly develop a Disability Buy-Sell Agreement between a business owner and a key employee.

Frequently asked questions

Why is a One-Way Buy-Out different from a standard buy-sell agreement?

A standard buy-sell agreement is usually funded by life insurance and triggered by death. A One-Way Buy-Out is funded by Disability Buy-Out insurance and specifically addresses disability, which for business owners is roughly eight times more likely to occur during their working years than death.

Who benefits from a One-Way Disability Buy-Out arrangement?

Both parties. The disabled owner is guaranteed a buyer for their interest in the business, and the key employee purchaser gets the funding needed to complete the purchase without having to find the money on their own.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-23

Tim Fuller

President, SRS Inc.

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Tim Fuller

The situation

Why this case improved

The result

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The risk clients don’t think about

How the coverage works

Why the timing matters

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What underwriters are actually evaluating

Case one: childhood epilepsy, resolved by age 20

Case two: ongoing seizures managed with medication

The takeaway

Frequently asked questions

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Understanding the risk profile

The case

Why this case qualified for Standard

The takeaway

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Why family cancer history usually hurts an offer

Where the opportunity is

Why this is worth checking before you quote

Frequently asked questions

Tim Fuller

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What the numbers actually mean

Underwriting has gotten more nuanced

Two cases that prove the point

The takeaway

Frequently asked questions

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Why carriers underinsure high earners

Where the gap shows up

The solution: stacking supplemental coverage

Frequently asked questions

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Understanding pre-diabetes

The case

Why this case improved

The result

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Who qualifies

How the benefit is structured

Key features

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Tim Fuller

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The problem this solves

What a One-Way Buy-Out actually is

Why this structure benefits both sides

Frequently asked questions

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