Disability & Long-Term CareQuestion 646 of 716
Business overhead expense (BOE) insurance is designed to:
a.Fund the disabled owner's personal retirement savings so that income continues after the business eventually closes
b.Pay the owner's estate taxes
c.Replace the disabled owner's personal salary
d.Reimburse a disabled business owner for ongoing business expenses such as rent, utilities, and employee wages
Explanation
BOE covers the fixed operating expenses of a business while the owner is disabled, keeping the doors open; it does not replace the owner's own income. Retirement and estate taxes are separate needs.
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Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)