Business Overhead

If you are self-employed and a business owner, protecting yourself with disability insurance is imperative. At the same time, protecting your employees’ salaries and monthly expenses is also crucial. How long would your business survive if you became disabled and had no income to pay the monthly expenses?

I counsel my clients on the importance of purchasing business overhead insurance to meet those monthly business financial obligations. Business overhead insurance is designed to reimburse a business for overhead expenses in the event a business owner becomes disabled. The benefit is paid for one to two years after a waiting (elimination) period. This is a shorter benefit period than personal disability, which pays to age 65, because it is designed to protect the business during that crucial time for two years immediately after the owner has been disabled.

As an advisor, I can assist you in integrating the right plan for your business to ensure your overall plan and business objectives are being met.

Details of a Policy
  • Coverage may be purchased from ages 18 to 60.
  • Premiums may be tax deductible
  • Work actively in the business
  • Waiting period of 30 or 90 days, this is the amount time you must be disabled before benefit payments begin
  • Non-cancelable until age 65
  • You have the choice to be paid over 12 or 24 months

There are additional details and options that can be discussed depending on your situation.

Eligible Expenses

  • Office rent
  • Office equipment rental
  • Employee Salaries
  • Utilities
  • Property Taxes
  • Employee group benefit costs
  • Employment Taxes
  • Legal and Accounting services
  • General office expense: telephone, postage,
  • Principal and interest on business debts and on mortgaged business property
  • Business Insurance expenses

As an advisor, I can assist you in intregrating the right plan for you business to ensure your  overall plan and business objectives are being met.