BOE – Business Overhead Expense Disability Insurance

Business Overhead Expense (BOE) coverage is designed to reimburse a business for overhead expenses should the owner experience
a disability. Eligible benefits include rent or mortgage payments, utilities, leasing costs, laundry/maintenance, accounting/billing and
collection service fees, business insurance premiums, employee salaries, employee benefits, property tax, and other regular monthly
expenses.  This type of policy usually has a 30, 60 or 90 day waiting period with a 12, 18 or 24 month benefit period.  Monthly benefits
run from $5,000 to $50,000 depending on the waiting period and benefit period selected.

For more info, see “Are You The Business? How To Prevent A Potential Double Financial Disaster? What You Need To Understand About Business Overhead Expense Disability Coverage?”

Business Loans

Financial institutions who make loans recognize the risk of a disability and a loan indemnification policy protects both parties.

Loan indemnification disability insurance will satisfy the bank requirements.   Monthly benefit periods from 1 year to 10 years are
available and there are also lump sum benefit options. The plan is usually set up to mirror the loan terms with a declining benefit.

College Loans

Many graduates from professional schools have sizeable student loans, which can impact future plans and life decisions around employment, marriage / family, and home ownership.

While your income may be on the rise early in your professional career, it could be several years before your yearly earnings
exceed your loan balance – a time when many professionals feel particularly vulnerable to a disability that could force them out
of work or professional practice.

Student Loan Protection is specifically designed to protect you during this time by providing an added layer of financial protection,
above and beyond what you might purchase to protect your personal income.

Disability Buy-Out

Designed for professionals and owners of small-to-medium-sized businesses who are full-time, active and the key to the continuation
of the business and without
them, the business will suffer financially.  A policy provides payment for the purchase of a totally disabled
business owner’s interest under a buy-sell agreement.  Elimination periods can be 365, 540 or 730 days. Benefits (funding options) can
be made by lump sum, monthly installments or a combination of both to buy out the business interest of the disabled owner.  The
disabled owner gets money and the healthy owner gets the business.

Learn more in “Often Overlooked In A Buy-Sell Agreement – The Disability Buy-Out Provision”.

Employer-Provided Group Long-Term Disability

More insights in “What is Group Long-Term Disability?”

High Limit Disability Insurance

Traditional individual disability limits the benefits for high-income earners at $20,000 to $25,000 a month.  High limit disability in
excess of these limits is available through Lloyd’s of London and available to $100,000 a month.

Multi-Life Disability Opportunities

Everyone likes a discount especially when it comes to disability insurance.  Significant cost savings are available for females with
substantial discounts for both genders when taking advantage of multi-life disability opportunities.

For more info, see “Understanding the Difference Between Sex-Distinct and Unisex Premiums”.

One company in mind requires only 3 lives insured and you have an entire year to get the three people, and they don’t have to be
from the same occupation class.

You can have one doctor, a nurse, and the office manager.  The only requirement everyone must be with the same employer.  All three policies
can be billed and paid individually and nothing is billed or managed through the doctor’s office.

Other multi-life disability opportunities are available through employer-provided group disability insurance.   This approach using individual
disability insurance policies creates a valuable second level of income protection with favorable underwriting allowances (guaranteed to
simplified issue) depending on the benefits selected and the number of lives insured.

Retirement Security

How do you continue to make monthly contributions to a retirement plan if you’re disabled?  What money will be available for
retirement at age 65 if ongoing contributions are not maintained?  This benefit allows you to continue saving for retirement by
paying a designated monthly amount to a trust for your retirement.  Different investment options are available and you can access
these funds at age 65 when your personal disability benefits stop.   Waiting periods are 180 or 365 days.  You must be totally
disabled and not working in another occupation to be eligible.

Special Risk / Occupation Disability Insurance

Solutions for special risk and occupations are available.

Substandard Disability Insurance

There are solutions for higher risk individuals who have been declined or higher risk occupations.  Elimination Periods: 30, 60, 90,
180 days (waiting periods vary by plan and state).  Benefit Periods: 2, 5 and 10- years depending on the plan. The pre-existing conditions
are covered immediately with full disclosure.  The coverage 
features a tiered benefits structure with a 33 percent benefit level if the
disability occurred within the first year of coverage; a 66 percent benefit level if the disability occurred within the second year of
coverage and 100 percent benefit level if the disability occurred after the second year of coverage.

Social Security Disability

Disability insurance provided by our government for all citizens is provided under Social Security.   These programs provide a floor
beneath all the other forms of disability insurance in the United States.  In other words, they are the safety net that catches everyone
who was either (a) uninsurable, or (b) had no disability insurance.  As such, they are a very large, very important social program, with
many beneficiaries. Qualifying criteria can be difficult and very restrictive in terms of defining a disability.  
Social Security disability
claimants who qualify receive benefits not large enough but intended to prevent abject poverty for adults and children.

State Disability (California)

Provides 60 to 70 percent depending on the income of partial wage replacement benefits to eligible California workers due to
non-work-related illness, injury, or pregnancy.  State Disability contributions are paid by California workers through employee
payroll deductions, which can vary from year-to-year.  Benefit payments can be reduced if you receive other income (such as sick
leave, paid time off, etc.) while receiving DI benefits from the Employment Development Department (EDD).  The first 7 days are
considered your waiting period.  The maximum benefit period is 52 weeks and for employers and self-employed individuals who
elect to contribute to State Disability, the maximum benefit amount is 39 times the weekly rate.

Workers Compensation

Workers’ compensation provides benefits for workers when their injury or illness arises out of or is caused by their work.  Workers’ compensation may also pay medical bills and benefits for temporary or permanent disabilities.

Marc Maretsky Personal Insurance Services based in Beverly Hills, serves all of California and the United States.  I help my clients acquire life, disability, long-term care, and critical illness insured solutions, as well as enroll them into Medicare when eligible.

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