Which of the following is correct regarding business overhead expense insurance

Which of the following will be covered under a business overhead expense policy?

Business overhead expense insurance covers the costs of running your business when your absence, due a disability, means those costs would go unpaid. The expenses covered by BOE insurance include important day-to-day functions like paying wages, debts, rent or mortgage, and taxes.

What type of insurance is sold to small business owners that must meet overhead expenses such as rent or utilities following a disability?

Business overhead expense (BOE) disability insurance , also known as Business Expense Insurance , pays the insured’s business overhead expenses if he or she becomes disabled . A BOE policy pays a monthly benefit based on actual expenses , not anticipated profits.

Under which condition would an employee’s group medical benefits be exempt from income taxes?

Under which condition would an employee’s group medical benefits be exempt from income taxes ? A) When the premiums and other unreimbursed medical expenses exceed 6.5% of the employee’s adjusted gross income . Group medical and dental benefits are receive tax -free to employees .

Which of the following is incorrect concerning taxation of disability income benefits?

Are made by the business and are not tax-deductible. Which of the following is INCORRECT concerning taxation of disability income benefits ? If paid by the individual, the premiums are tax deductible. Employee benefits are tax deductible the year in which they were received.

What is a business overhead policy?

Business overhead insurance reimburses a business owner for business expenses incurred during a disability. The expenses covered by a BOE policy are normally those that are deductible for federal income-tax purposes. Typically, expenses such as a mortgage or rent, salaries, and utilities would be covered.

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What statement is true regarding a minor beneficiary?

Which statement is true regarding a minor beneficiary ? In most cases, insurers require that a guardian be appointed in the Beneficiary clause of the policy or that a guardian be designated in the will.

What type of insurance is sold to small business owners that must meet overhead?

Disability overhead expense insurance, also known as business overhead expense insurance, pays a benefit to your business should you — the owner — become disabled and can’t work. The business can use the money to meet its day-to-day expenses such as paying salaries and utility bills.

What does overhead insurance cover?

What is business overhead expense insurance ? Business overhead expense insurance is an expense reimbursement policy that covers the fixed monthly overhead expenses required to keep a business running until the return of the insured owner, after a period of disability.

Which type of insurance provides funds for a business organization to purchase the business interest?

Which type of insurance provides funds for a business organization to purchase the business interest of a disabled partner? Disability Buy-Sell; The premiums are not deductible , but the benefits are received income tax-free.

What is the main purpose of the seven pay test?

The seven – pay test determines whether the total amount of premiums paid into a life insurance policy, within the first seven years, is more than what was required to have the policy considered paid up in seven years.

Which of the following best describes the aleatory nature of an insurance contract?

Which of the following best describes the aleatory nature of an insurance contract ? In insurance policies, the insured is not legally bound to any particular action in the insurance contract , but the insurer is legally obligated to pay losses covered by the policy.

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Which of the following applies to the 10 day free look privilege?

Which of the following applies to the ten – day free look privilege ? It permits the policy owner to reject the policy with a full refund of premium. All of the following are uses for an annuity except: To pay a business when a key employee retires.

How is the amount of Social Security disability benefits calculated?

How Much You Will Receive. The amount of your monthly disability benefit is based on your lifetime average earnings covered by Social Security .

What is the benefit of experience rating?

What is the benefit of experience rating ? It allows employers with low claims experience to get lower premiums; Group health insurance is usually subject to experience rating where the premiums are determined by the experience of this particular group as a whole.

Which of the following definitions would make it easier to qualify for total disability benefits?

would make it easier to qualify for total disability benefits ? occupation” definition of disability makes it easier to qualify for benefits .