BUSINESS OVERHEAD EXPENSE (BOE):
One of the first things to consider in protecting your lifestyle is Business Overhead Expense (BOE) coverage. Especially designed for sole-proprietors, partnerships, and small businesses, this policy will keep your business afloat for a short period, while the owner focuses on getting better. A monthly benefit is paid as a reimbursement to pay for fixed and ongoing expenses such as rent, salary of employees, business & property taxes, utilities, vehicle expenses, insurance etc. The premiums are affordable and can be used as a deductible business expense.
Ways to Cover Business Expenses in case of a Disability or Illness:
Do any of these alternative solutions make sense?
Savings: Maybe you’ve considered using your retirement savings as a back-up plan? Consider this…If you earned $45,000 year and saved 10% of your income, a 6 month disability would wipe out 5 years worth of savings.
Spouse: You may be thinking that you would still have an income from a working spouse. Would one income be enough if you are currently living off two? If your spouse is still working, will your spouse be able to juggle work and take care of you?
Borrowing: You might have a difficult time securing a loan when you are disabled. Would you be willing to lend money to someone who is not able to earn the funds to pay it back?
Group Benefits: Even if you have group benefits they may not be adequate over the long term. Many group plans only replace about half of your net income. Is that enough?
For a small monthly premium Business Overhead Expense
coverage can be an affordable solution that makes sense: Request Information