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This insurance covers business expenses that continue when your
business revenue slows or stops because you are totally disabled
due to illness or accident. Some programs include partial/residual
coverage and this is an important feature to have included as
most claims are for people whom have been off for a while and
then try to work.
Benefit payments begin once you have satisfied the elimination
period, normally 30, 60 or 90 days and continue until: you recover,
or you reach your benefit maximum. The maximum benefit will depend
on what you qualify for and your need. The other variable is the
length of time for the monthly benefit to be paid and 1 year is
common but other alternatives exist.
Based on present legislation, premiums for this insurance are
tax deductible, therefore, benefits would be taxable. (Although,
business expenses being reimbursed would be tax deductible.)
Eligible expenses are normal expenses in the operation
of your business such as rental or mortgage interest, utilities
such as hydro, heat and water, depreciation, employee salaries
and so on.
If the business is a partnership or operates under a cost-sharing
agreement, only your share of the expenses are considered eligible.
The plan does not cover self-remuneration, the cost of goods,
wares or merchandise of any nature, or any start up costs associated
with your occupation or profession.
Benefit payments are limited to actual expenses incurred. Some
limitations and exclusions will apply.
Recurrence of disability
If you return to work but suffer a subsequent period of total
disability resulting from the same illness or accident within
three months, the second period of disability will be considered
a continuation of the first. Benefits will resume and you will
not have to satisfy another elimination period.
Waiver of premium
If your total disability continues for three consecutive months,
you may qualify to have this coverage continue free of charge
while you are receiving monthly benefit payments.
Death benefit
If you should die while receiving benefits, usually an amount
equal to the eligible expenses incurred in the three months following
your death will be paid to your estate.
Plan Design
Your Wise Financial Group Inc. advisor can tailor a program to
suite your needs. Check out our Learn More
section for other living benefit concerns.
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