Business Partnership Protection


Will forced retirement jeopardize the survival and value of your business?


Will you be able to protect yourself and your business partners when one of faces an extended health challenge?

Did you know...?

  • 1 in 3 Canadians will be off work for 3 months or longer due to illness or injury

  • When a person cannot return to work within 90 days, they would be off work for an average of 2.9 years in total

  • The number one reason for retirement is "health reasons"

  • More than 1 in 4 workers are forced to retire due to health reasons

  • Without a well-funded buy-sell plan during a health challenge and subsequent transition, the business may face a loss of goodwill, a loss in the overall value of the business, and even forced liquidation

The Business Partnership Protection program provides tax-free, buy-sell funding to ensure a fair buyout of a business ownership share, when an extended illness, injury, or health condition forces you or one of your partners to exit the business.

If you are the exiting business partner, this program provides funding that:

  • Ensures you receive a fair valuation for all your contributions to the success of the business

  • Provides a clearly defined exit strategy, by converting your ownership share into a cash asset

  • Guarantees a buyer and a minimum set price for your ownership share

  • Eliminates your own risk of future business losses, especially since you can no longer contribute to the business

  • Removes the need for your family members to become involved in the business to protect their interests

If you are one of the remaining active business partners, this program provides funding that:

  • Minimizes disruption to your business and cashflow

  • Eliminates the need to support and share profits with a non-productive business partner

  • Guarantees a maximum set price for the inactive business partner's share

  • Prevents a competitor from buying out the inactive business partner's share

  • Eliminates the concern that an inactive business partner will start to make conservative business decisions and hinder future growth initiatives, due to fear of future business losses

  • Removes the need to involve the retiring business partner's family members, especially if they are unfamiliar with the business operations

Built-In Additional Benefits

  • Impartial Decision Benefit: An impartial organization will determine when the conditions for buy-sell funding are met, to remove the potential for conflict between the business partners.

  • Legal and Accounting Fees Benefit: When you are receiving the program funding, you will receive additional funding to cover the legal and accounting costs of the buy-sell transaction. The maximum funding for this benefit is $5,000.

  • Business Transfer Benefit: If you decide to enter into a shareholder agreement with another business before the age of 56, and you are not receiving any buy-sell funding, this benefit enables you to enroll into a new Business Partnership Protection program, regardless of your health at that time.

Optional Benefits

  • Buy-Sell Funding Method: You can choose to receive the buy-sell funding through one of three methods:

    • Lump-sum funding

    • Monthly funding

    • Down payment, followed by monthly funding




Ever since they were medical students, Claire and Grace have always known they would operate their own private practice. Now ages 41 and 43, respectively, Claire and Grace are equal business partners and owners of a thriving cardiology clinic.


One day, however, Grace injured her lower back while helping a friend move. The intense pain forced Grace to take time off from her business, leaving Claire to run the clinic by herself. Fortunately, Grace had enrolled in an Income Continuation program, which continued to provide her with a monthly personal income of $11,660. Grace had also added a Business Overhead Protection program, which provided $30,000/month funding for her share of the monthly overhead expenses for the clinic and kept the business out of debt.

After a full year, Grace was still unable to return to work, and Claire had concerns about the future of the clinic without Grace’s contribution. If Claire and Grace had a Business Partnership Protection program, Claire would receive $500,000 of funding to buy out Grace’s share of the $1 million business.

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Program contribution rates can vary and are subject to change. These rates are strictly for illustrative purposes.



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© 2019 by LivingWell Healthcare Funding Solutions