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Business Overhead Insurance
This insurance covers business expenses that continue when your business revenue slows or stops because you are totally disabled due to illness or accident. Some programs include partial/residual coverage and this is an important feature to have included as most claims are for people whom have been off for a while and then try to work.
Benefit payments begin once you have satisfied the elimination period, normally 30, 60 or 90 days and continue until: you recover, or you reach your benefit maximum. The maximum benefit will depend on what you qualify for and your need. The other variable is the length of time for the monthly benefit to be paid and 1 year is common but other alternatives exist.
Based on present legislation, BUSINESS OVERHEAD INSURANCE premiums for this insurance are tax deductible, therefore, benefits are taxable. (Although, business expenses being reimbursed would be tax deductible.)
Eligible expenses are normal expenses in the operation of your business such as rental or mortgage interest, utilities such as hydro, heat and water, depreciation, employee salaries and so on.
If the business is a partnership or operates under a cost-sharing agreement, your share of expenses are considered eligible expenses. Example: partners in a 50/50 partnership with a total of $10,000 of qualified monthly expenses can insure up to $5,000 per month each.
BUSINESS OVERHEAD INSURANCE does not cover self-remuneration, the cost of goods, wares or merchandise of any nature, or any start up costs associated with your occupation or profession.
Benefit payments are limited to actual expenses incurred. Some limitations and exclusions will apply.
»Recurrence of Disability
If you return to work but suffer a subsequent period of total disability resulting from the same illness or accident within three months, the second period of disability will be considered a continuation of the first. Benefits will resume and you will not have to satisfy another elimination period.
»Waiver of Premium
If you are totally disabled for three consecutive months, you may qualify to have this coverage continue free of charge while you are receiving monthly benefit payments.
»Death Benefit
If you should die while receiving benefits, usually an amount equal to the eligible expenses incurred in the three months following your death will be paid to your estate or named beneficiary.
»Plan Design
Your Wise Financial Group Inc. advisor can tailor a program to suite your needs. Contact us toll free 1-877-779-4731 or email info@companybenefits.ca.