Overhead Expense Plan

You've invested a lot of hard work into making your business a success.

 

But what if a sudden illness or accident prevented you from running your business? Would you have to lay off employees, pass up new business opportunities or sell your business to pay day-to day operating expenses?

 

The chances of this happening can be reduced if you have disability insurance. Disability insurance can provide you with tax-free dollars each month if a health problem prevents you from working.

 

The Overhead Expense Plan is a noncancellable and guaranteed renewable business disability insurance policy which provides a monthly reimbursement benefit for certain specified business expenses during total disability and a choice of partial or residual disability benefits during partial disability. The premiums are level to age 65.

 

The Overhead Expense Plan appeals to business owners and professional clients who have fixed expenses that would not be covered by the revenue generated by their business or practice, should they become disabled.

 

Covered Overhead Expenses

 

Covered overhead expenses include most normal and customary fixed expenses. Such expenses
usually continue during disability. Following are examples:

• Rent;
• Scheduled mortgage payment or mortgage interest plus scheduled depreciation;
• Electricity, telephone, postage, heat, water, gas, laundry;
• Property Taxes;
• Employee's salaries (excluding your salary, salaries of other people in your profession and salaries of relatives, if hired after the start of disability);
• Accounting services, union dues, professional dues; and
• Leasing costs.

Expenses that vary with the activity of the business are generally not included.

 

Additional professional benefits and features can be combined with this type of plan. Contact us to learn more.

 

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Buy/Sell Agreement Plan

 

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