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Business Overhead Expense

Don’t let a disability cost you your business.

You’ve worked hard to make your business a success. You enjoy the rewards when running smoothly and want to stay involved as long as possible.

But what if a disability should strike you or a key employee?

It’s not as unusual as it might seem. One in three Canadians will become disabled for more than 90 days, at least once before the age of 65*

*Source: CIA 86-92 Aggregate Mortality Table & Commissioner’s Disability Table A (Experience Table)

During a disability, revenue and savings could diminish rapidly, but business expenses may not. If that happens, you could face challenges in keeping business revenue and savings steady.

It’s why an overhead expense plan may be an option. It provides coverage for your monthly business expenses.

What’s an Overhead Expense Plan?

It’s a non-cancellable disability insurance policy for business owners, which could help cover the cost of eligible business expenses during a disability.

How long does the coverage last?

There are two length coverage choices. Coverage can be purchased to provide benefits for disabilities lasting:

  • Up to 12 months
  • Up to 24 months
How much coverage is available?

Coverage depends on occupation and industry and is based on the actual amount of your eligible monthly business expenses. Coverage can be provided from regularly incurred expenses such as:

  • Employees salaries
  • Rent
  • Utilities
  • Dental equipment lease costs
  • Telephone and fax lines

These are just a few of the eligible expenses that can be reimbursed. In addition, if your costs are less than your monthly benefit, the difference is not lost but carried over to future months until his maximum total expense benefit has been depleted.

Advantages

An overhead expense plan can help you:

  • Focus on recovery
  • Retain valued staff
  • Pay ongoing expenses and avoid a financial downfall
  • Keep your business on track

If you don’t become disabled, an overhead expense plan with a return-of-premium (50%) rider can:

  • Return up to 50 percent of the yearly eligible premium paid or waived on specific dates*

*Provided the insured is not disabled at the end of the applicable return period and any benefits paid. Any eligible premium waived or refunded has not exceeded 20 percent of the total amount of eligible dividend paid or waived.


Disclaimer: Insurance, Investment and Mortgage products & services are provided by Devangkumar Shah.
Mutual Funds are sold through Shah Financial Planning Inc., the Mutual Fund Dealer.
Lotus Loans and Mortgage ltd. is the principal mortgage broker.

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