As a business owner with a company to run, you know how difficult it is to get away. What happens if you become too sick or hurt to work? Could your business stay open while you
were gone? Would the business be able to continue paying the bills if you weren’t working? You can help protect your business should you become too sick or hurt to work. Overhead
Expense (OE) insurance helps:
• Keep your business running while you recover from a disabling injury or illness
• You have a financially sound business to sell, should you need to do so
Policy reimburses you each month for fixed overhead expenses while you’re totally disabled and unable to work.
With certain carriers, you can also add a Business Loan Protection rider.
The Business Loan Protection (BLP) rider covers loans taken out for business-related expenses, such as:
Purchase or expansion of a practice or business
Purchase of expensive equipment
An increase in working capital or build-up of inventory
In the event of a total disability, benefits can be assigned to the financial institution holding the loan. This rider offers guaranteed premium rates until the client reaches the loan termination date. It cannot be conditionally renewed beyond the age 65 policy anniversary.
Types of loans considered for coverage: Term, variable rate, commercial mortgage and lease financing
Buy-Sell Disability or Disability Buy-Out
Disability Buy-Out (DBO) insurance helps fund the purchase of a totally disabled business owner’s interest under a buy-sell agreement. It allows remaining owners to continue the business without:
The policy is conditionally renewable to age 65 with guaranteed premiums.
Disability Income Insurance policies have limitations and exclusions. Features and costs vary by insured’s occupation, age, health and state of residence. For costs and complete details of coverage, contact your personal insurance broker/agent. The information presented here is not specific to any individual’s personal circumstances and is provided for general information and educational purposes based upon publicly available information from sources believed to be reliable. We cannot assure the accuracy or completeness of these materials. The information in this article may change at any time and without notice.