Which of the following contracts enables the businessowner who becomes disabled to transfer the business to a new owner and receive payment?

Key-employee disability insurance is designed to provide financial support to a business in the event that a key employee becomes disabled. While it protects the business’s income and helps cover costs related to the absence of the key employee, it does not facilitate the transfer of ownership of the business itself. Therefore, it does not address the specific need for ownership transition when a business owner becomes disabled.

A business overhead expense policy covers the ongoing operational costs of a business when the owner is disabled and unable to work. It compensates for expenses such as rent and utilities, but it does not provide a mechanism for transferring ownership of the business. This policy primarily helps maintain business operations rather than facilitating ownership changes.

A disability reducing term policy is a type of insurance that decreases in value over time, typically aimed at covering debts or loans in the event of the policyholder's disability. It does not provide for the transfer of business ownership or any form of payout related to the sale of the business, making it unsuitable for the needs of a disabled business owner looking to sell their interest.