Business Owners Coverage
Protection for Business Owners
As a business owner; what is the longest vacation you have ever taken? Most business owners laugh at this question and respond with; “What’s a vacation?”
What if you were forced to take a six-month vacation and were forbidden to work? How long could your business continue to run without you? How long could you continue to pay your employee’s salaries? Their benefits? How long will the lights stay on?
- Employee salaries or wages
- Rent or mortgage principal and interest payments
- Electricity, telecommunications, heat and water bills
- Cost of maintaining equipment, furniture and software licenses
- Equipment and furniture leases
- Interest on existing business loans incurred before the disability
- Business insurance premiums
- Loan payments from debt related to the purchase of the business
- Payroll taxes
Coverage Amounts Available
With BOE Insurance, you can get coverage that fits your needs – ranging from $1,000 to $50,000 per month. To qualify, you must be responsible for 10% or more of the expenses of your business.
Your benefits begin after you have been disabled for 30, 60, or 90 continuous days. You choose the elimination period. Most carriers offer benefit period of up to 24 months.
Tax Deductible Payments
You might be able to deduct your premium payments when you file your federal income tax return. As a business expense, your payments fall under IRS ruling 55-264, IRB 1955-19, page 8. You should consult your tax advisor about this deduction.
Disability Buy-Sell Insurance – A Clean Exit
The Need for Disability Buy-Sell
Stop and think. If your business partner becomes disabled and is unable to pull his or her weight, how will you feel in six months? How will you feel in two years? How will your partner feel in two years? This kind of situation easily results in awkward personal relationships and crippling financial strain. A far smarter alternative is to have a backup plan in place — before disability strikes.
A disability buy-sell policy protects both partners while saving countless businesses and relationships. Do you understand how this coverage helps you prepare for all the what-ifs?
Disability Buy-Sell in a nut shell
Disability buy-sell insurance policies are for small businesses with partners or several owners. This policy is often coupled with an individual disability policy. It allows a company to remain operating if one of the owners becomes disabled.
The disability buy-sell policy provides cash for another owner to purchase the disabled insured’s share of the business. This policy does not replace income, rather it protects the business. The benefits of this policy are twofold, the disabled owner receives his value of the business and the business remains intact and fiscally stable.