The business can exercise an option at the anniversary of their policy during the first 10 years. The maximum amount available when exercising this option is the lesser of: - The insured's share multiplied by the increase in the fair market value of the business
- The cumulative BIC minus any additional life insurance amounts previously exercised
The share of the insured at the time the exercise is the lesser of: - The percentage of their share when the policy is issued
- The percentage of their share when the option is exercised
Every time an option is exercised, the financial statements for the last 3 years as well as a document indicating the insured's ownership share of the business must be provided. |