[Health Insurance] 33, Business Uses of Disability Insurance
This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.
In this episode you will learn:
Business Overhead Expense (BOE) insurance covers fixed costs like rent and employee salaries, but explicitly excludes the owner's salary.
BOE policy premiums are tax-deductible as a business expense, but the benefits received are considered taxable income to the business.
Key Person Disability insurance protects a business from the financial loss of a vital employee, with the business receiving the benefit tax-free.
Disability Buy-Sell insurance provides funds for remaining owners to purchase the business interest of a partner who becomes permanently disabled.
Premiums for Key Person and Disability Buy-Sell policies are not tax-deductible, and the benefits are received by the business income tax-free.
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