Disability & Long-Term CareQuestion 89 of 315
Which disability product is designed to reimburse a disabled small-business owner for fixed expenses such as rent, utilities, and employee salaries?
a.Key-person disability insurance
b.Business overhead expense (BOE) disability insurance
c.Personal disability income insurance
d.Disability buy-out insurance
Explanation
Business overhead expense (BOE) disability insurance reimburses the fixed expenses of running a business while the owner is disabled. It does not pay the owner's personal income; that is the role of personal disability income coverage.
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Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)