Overhead expenses, such as rent, utilities, and interest must always be paid. But if a key person becomes disabled, these bills may be difficult to pay. Business Overhead Expense Insurance can help cover some of these costs.
Advantages & Considerations
- An additional monthly income can pay overhead expenses while the key person is disabled
- Premiums are a deductible corporate expense so long as costs are deemed an ordinary and necessary trade or business expense
- Disability benefits are taxable when received by the corporation, but are offset by tax-deductible overhead expenses when paid
